Oil and Gas Royalties

A royalty refers to the ownership of a portion of the minerals or the revenue that is produced. Royalty interests, nonparticipating royalty interests and overriding royalty interests are portioned in different ways and usually expressed as a percentage or fraction. A royalty interest owner is not responsible for any operation or production costs.

At Royalty Clearinghouse, we've purchased thousands of royalty interests and can help you get the most value for your royalty interest.

Helpful Articles on Oil and Gas Royalties

Oil and Gas Terminology

Chain of Title

A chain of title is the chronological order of successive legal owners of a property - such as mineral interest or the ownership of a home. It often lists the registration particulars of the document by which title is transferred from each owner to his successor in title.

Assignment

A legal document (similar to a deed) that conveys ownership of real property from one party to another.

Deed

A deed is the document that transfers ownership of real property (such as a mineral interest or ownership in a home). It contains the names of the old and new owners and a legal description of the property, and is signed by the person transferring the property. You can't transfer real estate without having something in writing, which is almost always a deed or an assignment.

Royalty Check

Royalty checks normally come monthly, and are determined by the division of interest (i.e. your ownership in a well(s)), the production for the month, oil and gas prices, and operator deductions. It may take several months once a well goes into production for royalty checks to start. Before the oil company will commence payments, it has to establish an owner's division of interest for the owner.

Blanchard

A blanchard interest is a unit that has multiple operators. The primary operator pays the royalties and each of the other operators pays an excess royalty to the royalty owner.