What is an Overriding Royalty Interest?

Published in Oil and Gas Definitions, Oil and Gas Royalty

An overriding royalty interest is a type of oil and gas royalty that is created from a working interest. An owner of an overriding royalty interest is entitled to a percentage share of the revenue generated from the gross production and free from covering any associated operating or production costs. Owning an overriding royalty interest does not however eliminate the owners responsibility to pay their portion of state and federal taxes related to the property.

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