What are gross over-riding royalties (GORRs)?
A gross over-riding royalty (“GORR”) in reference to our business is typically a percentage interest in the gross production from a producing oil or gas well. The attractiveness of owning a GORR is that the revenue (or production in kind) without the impact of general operating expenses and environmental responsibilities typical oil & gas companies are exposed to. As a result, WCSB investors are not typically exposed to unexpected cost over-run, production expense issues or environmental responsibilities as these are solely to the account of the operator.
