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.
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:
https://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.
Law Offices of Alex Hernandez Jr. 361.935.9055