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What is a royalty percentage?

Updated: 12/18/2022
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TrisJamesgp9135

Lvl 1
8y ago

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The royalty percentage determines how much share of the production you will receive. When you sign an oil and gas lease, you will typically be paid a lease bonus up front and also agree to a royalty percentage. The royalty percentage in your lease will determine how much cash you receive from the production since your share will be calculated based on this number. As a mineral owner, you want to negotiate the highest royalty percentage possible.

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