Adoption of Title 33: Overriding Royalty Interest Code 

On Dec. 17, 2024, following public notice and an opportunity for public comment, the Southern Ute Indian Tribal Council enacted Title 33 of the Southern Ute Indian Tribal Code, the Overriding Royalty Interest Code (“ORK Code”).  

The ORRI Code is intended to protect the Southern Ute Indian Tribe from the burden that ORRIs pose to the timely and diligent development of the Tribe’s nonrenewable energy minerals and to prevent the premature abandonment of Tribal mineral development activities. Under the newly enacted code, effective as of Jan. 1, 2025, before an overriding royalty interest or production payment may be validly created as an interest applicable to any existing or future lease of non-renewable Tribal energy minerals, such interest must first be approved by the Southern Ute Indian Tribal Council or its designated representative, the Southern Ute Indian Tribe’s Department of Energy (“DOE”). The ORRI Code does not apply to ORRIs in effect prior to January 1, 2025. Any future assignment or reservation of an ORRI created under a contractual agreement (including a farmout agreement) entered before or after January 1, 2025, will not be a valid interest unless approved by the Tribe.  

This new code is also posted on the Southern Ute Indian Tribe’s website, under Southern Ute Tribal Code, for anyone who would like to read it. Should you have any questions regarding the recently enacted ORRI Code, please contact the DOE at 970-563-5000. 

Link to ORRI Code document: https://www.southernute-nsn.gov/government/tribal-code/