Definitions for "Royalty Interest"
An interest in a natural gas lease that gives the owner of the interest the right to receive a portion of the production from the leased acreage, but generally does not require the owner to pay any portion of the costs of drilling or operating the wells on the leased acreage. Royalties may be either landowner's royalties, which are reserved by the owner of the leased acreage at the time the lease is granted, or overriding royalties, which are usually reserved by an owner of the leasehold in connection with a transfer to a subsequent owner.
an interest in production where property is under an oil and gas lease
An interest in a property that entitles the mineral rights owner to a share of the value of the oil and/or natural gas produced on the property free of production costs.
Keywords:  revenue, portion, legal, income, right
a legal right to some portion of a company's revenue or income