ROYALTY INTEREST
royalty interest.Oil & gas. A share of production — or the value or proceeds of production,
free of the costs of production — when and if there is production. • A royalty interest is usu.
expressed as a fraction (such as 1/6). A royalty-interest owner has no right to operate the property
and therefore no right to lease the property or to share in bonuses or delay rentals. In some states a
royalty owner has the right of ingress and egress to take the royalty production. Authorities are
split over what costs are costs of production. Several different but related kinds of royalty interests
are commonly encountered. See ROYALTY(2). [Blacks Law 8th]