# Non-Participating Royalty Interest (NPRI) Explained, and How to Sell One

> What an NPRI is, how it differs from a mineral interest and a non-executive mineral interest, fixed versus floating royalty, the Van Dyke double fraction rule, ratification, and what an NPRI is worth.

Source: https://www.berlinroyalties.com/non-participating-royalty-interest/
Publisher: Berlin Royalties, a veteran-owned oil and gas mineral and royalty buyer in Tulsa, Oklahoma, buying for its own account since 2014. Call or text 918-984-1645.
License: free to quote and cite with attribution to Berlin Royalties and a link to the source URL.

Interest Types · Plain English

## The non-participating royalty interest.

An NPRI is the interest most likely to be misdescribed on a deed, misvalued by a buyer, and misunderstood by the person who owns it. It is also, in Texas, at the center of the most consequential mineral law the Supreme Court has handed down in a generation.

[What Is My NPRI Worth?](https://www.berlinroyalties.com/free-valuation/) [Ask a Landman, Free](https://www.berlinroyalties.com/ask-a-landman/)

## Start with what a mineral interest actually is

The mineral estate is not one thing. It is a bundle of five separable rights, and almost every confusing interest in oil and gas is the result of somebody splitting that bundle.

- The right to **develop**, including access to the surface

- The right to **lease**, called the executive right

- The right to receive **bonus**

- The right to receive **delay rentals**

- The right to receive **royalty**

A non-participating royalty interest is the fifth stick, and only the fifth stick. An NPRI owner receives a share of production revenue and nothing else. No say in whether the property is leased, no share of the bonus check, no delay rentals, no right to go on the land.

The word "non-participating" refers to not participating in those other rights. It does not mean not participating in the money.

## NPRI compared to the interests it gets confused with

| Interest | Can lease? | Gets bonus? | Gets royalty? | Pays costs? | Lasts as long as |

| **Mineral interest** | Yes | Yes | Yes | No | Forever, unless limited || **Non-executive mineral interest** | No | Usually yes | Yes | No | Forever, unless limited || **NPRI** | No | No | Yes | No | Forever, unless a term royalty || **ORRI** | No | No | Yes | No | Only as long as the lease it is carved from || **Working interest** | Yes | n/a | No, takes revenue net of cost | **Yes** | The lease |

The two distinctions that matter most in practice:

**NPRI versus non-executive mineral interest.** These look identical on a check stub and are very different on paper. A non-executive mineral owner still owns minerals; they simply cannot lease them, and depending on the deed they usually still share in bonus. An NPRI owner owns no minerals at all, only a royalty carved out of somebody else's. When a deed is ambiguous, which one you have can change your value by a large multiple.

**NPRI versus ORRI.** An NPRI is carved out of the mineral estate and survives forever, through lease after lease. An [overriding royalty interest](https://www.berlinroyalties.com/overriding-royalty-interest/) is carved out of a particular lease and dies with it. Two interests paying the same amount today can be worth wildly different numbers, because one of them has an expiration date attached to a document you may not have read.

## Fixed versus floating: the fraction that decides everything

This is where the money is, and where the litigation is.

A **fixed** NPRI is a set fraction of gross production. "One sixteenth of all oil and gas produced" means one sixteenth, regardless of what royalty the mineral owner later negotiates.

A **floating** NPRI is a fraction of whatever royalty the lease provides. "One half of the royalty" means one half of whatever gets negotiated. If the lease is at one eighth, you get one sixteenth. If a later lease is at one fourth, you get one eighth, and your income doubles without you doing anything.

Over the life of a family interest, the difference between those two readings is frequently the difference between a modest asset and a substantial one. Modern leases pay far more than the one eighth that was standard for most of the twentieth century, so floating interests carved a century ago have quietly appreciated in a way fixed ones have not.

## The double fraction problem, and Van Dyke

Old deeds are full of language like "one half of one eighth." Read as arithmetic, that is one sixteenth. Read as the drafters of the 1920s actually meant it, it may be one half.

The reason is the **estate misconception**. For decades, laypeople and many lawyers believed a mineral owner owned only the one eighth royalty rather than the whole mineral estate, because one eighth was the universal royalty. So "one eighth" was written as shorthand for "the minerals."

In ***Van Dyke v. The Navigator Group***, 668 S.W.3d 353 (Tex. 2023), the Texas Supreme Court held that when a double fraction involving one eighth appears in an antiquated instrument, courts begin with a **rebuttable presumption** that the one eighth refers to the entire mineral estate. A 1924 reservation of "one-half of one-eighth" reserved **one half**.

The presumption can be rebutted. In ***Clifton v. Johnson*** (Tex. Mar. 13, 2026), the Court held it was rebutted where the deed itself multiplied the fractions to a single product, such as "1/128 (1/16 of the usual 1/8 royalty)." Where the instrument does the arithmetic, the stated number controls. *Clifton* also signals the presumption reaches royalty interests, not only mineral interests, which is what makes it an NPRI case as much as a mineral case.

The rule in one sentence: **start with the Van Dyke presumption, then ask whether the instrument expressly multiplies the fractions to a single number.** If it does, the number controls. If it does not, you may own eight times what you have been told.

Separately, in *ConocoPhillips Co. v. Hahn*, 704 S.W.3d 515 (Tex. 2024), the Court held that ratifying a lease does not by itself convert a fixed royalty into a floating one, though a stipulation of interest can. Which matters directly to the next section.

## Ratification, pooling, and why you may be asked to sign something

Because an NPRI owner has no executive right, they are not a party to the lease. That creates a problem when the operator wants to pool the tract into a unit: pooling reallocates production, and an owner who never agreed to it is not bound by it.

The rule from *Montgomery v. Rittersbacher*, 424 S.W.2d 210 (Tex. 1968), is that an NPRI owner may either stand on the tract and take royalty only on production physically from it, or **ratify** the lease and pooling and take a unit-wide share.

That choice is a real decision with money on both sides:

- If the well is **on your tract**, ratifying dilutes you across the whole unit. Refusing may pay more.

- If the well is **elsewhere in the unit**, refusing to ratify may mean you receive nothing at all. Ratifying is how you get paid.

Ratification requests routinely arrive with no explanation of any of this, alongside a division order, framed as paperwork. Before you sign one, work out where the well actually is relative to your tract. We will do that for free.

## What the executive owes you

The person holding the executive right decides whether and on what terms to lease, and their decision sets your income. Texas imposes a **duty of utmost good faith** on the executive toward the non-executive interest, from *Manges v. Guerra*, 673 S.W.2d 180 (Tex. 1984). The classic breach is an executive who negotiates a low royalty and a large bonus, because bonus is a right the executive keeps and royalty is the one they share with you.

If a lease was signed over your interest at a royalty visibly below the market in that county at that time, and the bonus was unusually rich, that pattern is worth having someone look at.

## What is an NPRI worth?

Priced properly, an NPRI is a perfectly good asset, and it is priced properly less often than it should be. What actually drives the number:

- **Producing wells and their decline.** The same analysis as any royalty. See [how minerals are valued](https://www.berlinroyalties.com/mineral-rights-value/).

- **Fixed or floating.** A floating interest in an area where royalty rates have risen carries upside a fixed one does not.

- **Drilling around you.** An NPRI shares in new wells on the tract exactly like a mineral royalty does. Non-producing NPRI acreage in an active area has real value.

- **What it does not have.** No bonus, no lease negotiation, no ability to force anything. That is a genuine discount to a mineral interest, and an honest valuation shows it as a discount rather than pretending it is not there.

Many buyers decline NPRIs outright, because they cannot be leased, the decimals are awkward, and quick-flip underwriting does not handle them. Owners read that silence as evidence of no value. It is evidence of no interest in doing the work.

## Common questions

Can I sell an NPRI?Yes. An NPRI is real property and is freely conveyable by deed, in whole or in part, with no consent needed from the mineral owner, the executive, or the operator. After closing the buyer files a transfer order and the payor redirects payment. We buy NPRIs regularly, including small ones, and we pay all closing costs.

Can my NPRI expire?A perpetual NPRI does not expire. A **term** royalty does: it is written to last for a fixed period, or for a period and as long thereafter as there is production. Term royalties are common in old family conveyances and are frequently forgotten until they have already lapsed. If your instrument contains the words "for a term of," have it read now rather than later.

Do I pay any costs out of an NPRI?You never pay drilling or operating costs. Whether post production costs such as gathering, compression, and processing may be deducted from your check depends on the language creating the interest and on state law, which varies sharply. Our [royalty payment laws](https://www.berlinroyalties.com/royalty-payment-laws/) page sets out each state's rule with citations, and the [statement decoder](https://www.berlinroyalties.com/royalty-statement-decoder/) explains the lines on your stub.

How do I even find out whether I have an NPRI or minerals?Read the instrument that created it, which is recorded at the county courthouse. The tells are language conveying or reserving a royalty rather than minerals, an express statement that the grantee shall not participate in bonus, rentals, or leasing, and a fraction stated against production rather than against the mineral estate. Send us what you have and we will pull the record and tell you, free.

I was told my interest is 1/128. Is that right?Maybe, and maybe it is 1/16. That specific fraction is the one at issue in *Clifton v. Johnson*. If your deed writes out "1/128 (1/16 of the usual 1/8 royalty)," the arithmetic was done in the instrument and the number likely controls. If it says "one sixteenth of one eighth" with no product stated, the *Van Dyke* presumption may put you eight times higher. This is worth a lawyer's read if the acreage is meaningful.

### Send us the deed. We will tell you what you actually own.

NPRI language is the most commonly misread language in mineral ownership, and the misreads run in both directions. We will pull the recorded instrument, tell you whether you hold a royalty or minerals, whether it is fixed or floating, and what we think it is worth. Free, no obligation, and no mailing list.

[Get a Free Valuation](https://www.berlinroyalties.com/free-valuation/) [Ask a Landman](https://www.berlinroyalties.com/ask-a-landman/)

## Related

- [Overriding royalty interests, and why they expire](https://www.berlinroyalties.com/overriding-royalty-interest/)

- [Unusual royalty interests: net profits interests, term royalties, production payments](https://www.berlinroyalties.com/unusual-royalty-interests/)

- [Division orders: what to check before you sign](https://www.berlinroyalties.com/division-order/)

- [Texas mineral rights](https://www.berlinroyalties.com/texas/), including *Van Dyke*, *Clifton*, and *Fasken v. Puig*

- [How mineral rights are valued](https://www.berlinroyalties.com/mineral-rights-value/) and [when not to sell](https://www.berlinroyalties.com/when-not-to-sell/)

- [The Oil Scout: types of oil and gas interests](https://www.berlinroyalties.com/oil-scout/types-of-oil-gas-interests/)

- [Mineral owner's glossary](https://www.berlinroyalties.com/glossary/)

Case citations are to Texas law as of August 2026. Other states treat non-participating royalty interests differently, particularly on ratification and on the executive's duty, and Oklahoma resolves pooling through the Corporation Commission rather than through lease pooling clauses. Berlin Royalties is a mineral buyer and a landman shop in Tulsa, not a law firm, and this page is general information rather than legal advice about your instrument. If a double fraction in your deed involves real acreage, hire a lawyer.