Net revenue interest (NRI) is the percentage of production revenue an owner actually receives from a well after royalties and other burdens are deducted from the gross.
A working interest owner pays a share of drilling and operating costs and owns a gross share of production — but their net revenue is smaller, because royalties and overriding royalties are carved out first. NRI is what is left after those burdens. For a pure royalty or mineral owner, the equivalent figure is your decimal interest on the division order.
A simple way to think about it: gross interest is the size of the pie slice; NRI is the slice after the chef takes the royalty piece off the top.
Division orders & decimal interest
Overriding royalty interest (ORRI)
Educational information only — not legal, tax, or investment advice. Consult a qualified attorney, CPA, or landman about your specific situation.
For a working interest owner, NRI generally equals the working interest percentage multiplied by (1 minus the total royalty burden). The exact figure appears on your division order as a decimal interest.
For a royalty or mineral owner, your decimal interest functions as your net revenue share. The term "NRI" is most often used in the context of working interest ownership.
Because royalties and overriding royalties are deducted before the working interest owner is paid. Those burdens reduce gross interest down to net revenue interest.
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