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Royalties- No Not The Queen and King, the Oil and Gas Kind

In the oil and gas industry this refers to ownership of a portion of the resource or revenue that is produced. A company or person that owns a royalty interest does not bear any of the costs of the operations needed to produce the resource, yet the person or company still owns a portion of resource of revenue produced.

In contrast to a royalty interest, a working interest refers to an investment in an oil and gas operation where the investor does bear some of the costs for exploration, drilling and production. An investor that has a royalty interest only bears the cost of the initial investment and isn't liable for ongoing operating costs.

Source: http://www.investopedia.com/terms/r/royalty-interest.asp

In laymen's terms a royalty interest what you get for the oil company going onto your land and producing oil, they bear the costs, you get rewarded a share.

If you have an issue with a royalty interest or believe you should have received a royalty interest, call us today we're here to help with your claim.


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Categories: Oil & Gas Law

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