What is an override?

An overriding royalty interest is the right to receive revenue from the production of oil and gas from a well. The overriding royalty is carved out of the lessee’s (operator’s) working interest and entitles its owner to a fraction of the production. An overriding interest is limited in duration to the terms of an existing lease, but is not subject to any of the expenses of the development, operation or maintenance of a well or unit.