Which interest in oil and gas is considered non-perpetual and results from a lease acquisition?

The overriding royalty interest is considered non-perpetual and results from a lease acquisition because it is a type of royalty interest created above the mineral owner’s royalty. This interest usually does not last indefinitely; rather, it is linked directly to the lease under which it was created.

When a working interest owner drills for oil and gas, they often negotiate an overriding royalty interest to compensate individuals for their contributions to the project or for certain risks taken. This overriding royalty is set to expire when the lease terminates, which is crucial in defining its non-perpetual nature.

In contrast, other interests such as a standard royalty interest or even a working interest are typically tied more closely to the life of the lease or have different perpetuity terms associated with them. Surface interests relate strictly to land usage purposes and do not pertain directly to oil and gas extraction rights, emphasizing the unique position of overriding royalty interests in this context.