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An override is a percentage payout to an individual, usually the original owner (brokerage firm or such) of the mineral interest or mineral lease, that is paid after drilling and production costs are lessed from money made, yet prior to paying royalties. In other words, if production results in a $100 million gross profit and costs were $40 million and an individual had a 10% override, that individual would receive 10% or the remaining $60 million (i.e. $6 million) which would be paid prior to paying out royalties.

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An override is a percentage payout to an individual, usually the original owner (brokerage firm or such) of the mineral interest or mineral lease, that is paid after drilling and production costs are lessed from money made, yet prior to paying royalties. In other words, if production results in a $100 million gross profit and costs were $40 million and an individual had a 10% override, that individual would receive 10% or the remaining $60 million (i.e. $6 million) which would be paid prior to paying out royalties.


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