1. Mineral Rights

• Ownership of the actual subsurface minerals (oil, gas, etc.).

• Gives the owner the right to lease, sell, or develop the minerals.

• Can be separated from the surface estate (surface owner may not own the minerals).

2. Royalty Interests

Paid as a percentage of production revenue without bearing costs of drilling or operating. Several subtypes exist:

• Landowner’s Royalty – Reserved by the mineral owner when granting a lease.

• Overriding Royalty Interest (ORRI) – Created from a lease; carved out of the lessee’s (operator’s) working interest. Ends when the lease expires.

• Non-Participating Royalty Interest (NPRI) – Owner gets royalties but has no say in leasing or bonuses.

3. Working Interest (WI)

• The right to explore, drill, and produce oil and gas.

• Owner pays a share of the costs (drilling, operating) but receives a larger share of profits compared to royalties.

4. Non-Operated Working Interest (Non-Op)

• A working interest where the owner does not operate the well but still pays their share of costs and receives revenue.

5. Surface Rights

• Ownership of the surface only (no minerals).

• May still have rights to compensation for surface use, damages, or easements related to drilling.

In short:

• Mineral rights = ownership of subsurface resources.

• Royalty interests = share of production revenue, no costs.

• Working interests = share of production revenue, with costs.

• Surface rights = land only, no minerals.