Producing vs Non-Producing Royalty Interests: What’s the Difference?

If you’re considering selling your mineral rights, it’s important to know about the different types of royalty interests and what they mean. A royalty interest is a type of property interest that gives you, the owner, a percentage of the revenue that comes from the minerals on your land. To learn more about these interests and their nuances, keep reading or contact us at Enfield Minerals.

Non-Producing Royalty Interests (NPRI)

A non-producing royalty interest, also referred to as an NPRI, is a royalty interest where you do not have the right to make decisions like leasing your land and you might not receive leasing bonuses. However, you won’t have to pay any of the costs that come with drilling or operating wells to mine the minerals on your land.

Choosing an NPRI is a good option if you don’t want to be involved with the mining process after leasing your mineral rights. You won’t have to explore, develop, or produce anything. When you still want a say in the negotiation process but don’t want to deal with the labor, this is the option for you.

Producing Royalty Interests

After selling your mineral rights to an investor like us, you’ll be able to benefit from producing royalty interests. This type of royalty interest only applies to land that is currently under production or subsurface that is currently being extracted from to generate revenue monthly.

Once you sign off on a lease with producing royalty interests, you’ll get a percentage of all the output that comes from your property whether it's oil or minerals. The investor still becomes the owner of the oil and gas royalty rights, but you’ll get a portion of the profits since it’s considered your land.

Contact Enfield Minerals for all Your Mineral Needs

If you’re interested in learning more about mineral rights or you’re ready to get started with selling or leasing them, contact our Houston, TX mineral rights company today. We’ll be more than happy to go over your options after we’ve surveyed your available land. Come see us today or schedule an appointment online!

Being mineral rights buyers, we have an interest in your inherited mineral rights, particularly if you own those rights in select states like Pennsylvania, Texas, or Oklahoma. If