What is a royalty payment?
A royalty is a percentage of the proceeds from the sale of produced natural gas or oil. Royalty payments start after natural gas or oil is produced and continue for the life of the well.
When should I start receiving my royalty payments?
Royalty payments begin only if your property is placed in a producing unit, i.e. if the natural gas is produced and sold. The time from the lease signing to mineral production varies and is based on several factors, including the complexity of the title, market conditions and activity in the area.
How are my royalty checks calculated?
Royalty amounts are based on the number of people who own the mineral rights and their proportionate share. Gross interest is used to obtain your net revenue interest:
Net Mineral Acres (Example: 10)
Divided by
Gross Acres (Example: 160)
=.0625 (Your net interest payment)
For specific questions regarding your mineral lease or royalty payments, please contact your contracted producer or lease broker.