Podcast: Overriding Royalty Interests: An Extra (But Often Necessary) Cost of Operating

Join Matt Jones and April L. Rolen-Ogden on “Energy Law This Week” as they delve into the complexities of overriding royalty interests in the oil and gas industry. This episode explores why they are granted and how they work, with emphasis on the “washout” issues that often accompany the interests. Because these burdens are often part of oil and gas transactions, and because they are the way in which many landmen, geologists, and geophysicists get paid, an enormous amount of money is often at stake. And as with most interests, there is often a question of what costs are borne by it, particularly when it comes to post-production costs.  Often abbreviated as ORRI, the  Over-Riding Royalty Interests is a key feature of many oil and gas net revenue streams. (Program Note: Matt wanted to describe these issues as an “either/ORRI” situation; April recoiled in horror.)

Listen to the full episode on the Oil & Gas Global Network here.