Selling Non-Participating Royalty Interest (NPRI)
What Is A Non-Participating Royalty Interest ( NPRI )?
There are various types of mineral rights. Pertinent to oil and gas rights, if one owns "mineral rights," it includes the right to explore for oil and gas; or, more realistically, the right to lease the lands to an oil company and let them do it (because it is super expensive, very few individuals can afford to drill oil or gas wells! This right to grant an oil & gas lease is often called the executive right. Mineral rights also include the right to receive a lease bonus or annual lease rental. And, lastly, mineral rights include the right to receive a royalty (oil royalties or gas royalties) should an oil or gas company strike oil or gas on the lands.
A non-participating royalty interest (NPRI) is the royalty part of mineral rights carved out of the other mineral rights. It's not that common these days in conveyances but many people have inherited a NPRI from something a relative did many years ago. And if you own a non-participating royalty, it can be sold. An owner of a NPRI is the one who receive the royalty checks from the oil company or gas company. If the oil well or gas well is producing, it creates a residual income stream until it goes dry and is abandoned. For those selling a NPRI, they are selling that income stream for a lump sum cash settlement.
What rights do you have as an owner of an NPRI? In summary, you have the right to receive oil royalty checks and gas royalty checks and that's about it. As stated, you don't have rights to lease bonuses or rentals. And you usually do not have the rights to make demands on an oil and gas company for performance or to protect your property against drainage by a well near your property line; usually the owner of the executive right is the one in control of that. So, here's to hope that the owner of the executive right (mineral rights owner) leased the land to a good operator, they drilled a well and struck oil or gas, and you receive many great royalty checks for a long time!
Contact Info
If you are interested in selling a non-participating royalty interest (NPRI), just call the number below and speak with Bill, an easy-to-work-with expert who has over 35 years experience and has bought many NPRI properties from selling mineral owners:
Ph 318-426-0909
Ph 800-664-7650
(Ask for Bill)
You may also fill out the form below. If you do so, please describe the mineral rights or the NPRI that you have.
A non-participating royalty interest (NPRI) is the royalty part of mineral rights carved out of the other mineral rights. It's not that common these days in conveyances but many people have inherited a NPRI from something a relative did many years ago. And if you own a non-participating royalty, it can be sold. An owner of a NPRI is the one who receive the royalty checks from the oil company or gas company. If the oil well or gas well is producing, it creates a residual income stream until it goes dry and is abandoned. For those selling a NPRI, they are selling that income stream for a lump sum cash settlement.
What rights do you have as an owner of an NPRI? In summary, you have the right to receive oil royalty checks and gas royalty checks and that's about it. As stated, you don't have rights to lease bonuses or rentals. And you usually do not have the rights to make demands on an oil and gas company for performance or to protect your property against drainage by a well near your property line; usually the owner of the executive right is the one in control of that. So, here's to hope that the owner of the executive right (mineral rights owner) leased the land to a good operator, they drilled a well and struck oil or gas, and you receive many great royalty checks for a long time!
Contact Info
If you are interested in selling a non-participating royalty interest (NPRI), just call the number below and speak with Bill, an easy-to-work-with expert who has over 35 years experience and has bought many NPRI properties from selling mineral owners:
Ph 318-426-0909
Ph 800-664-7650
(Ask for Bill)
You may also fill out the form below. If you do so, please describe the mineral rights or the NPRI that you have.