Oil and Gas Royalty Defined

An oil and gas royalty is a share of the product or profit from real property, reserved by the grantor of a mineral lease in exchange for the lessee’s right to mine or drill on the land. Black’s Law Dictionary 1445 (9th ed.2009). “Royalty” is commonly defined as the landowner’s share of production, free of expenses of production. Heritage Res., Inc. v. NationsBank, 939 S.W.2d 118, 121–22 (Tex.1996). The royalty interest is part of the lessor’s interest in an oil and gas lease.