--- title: What is Royalty Interest? description: Before investing time, money and resources into the development of oil and gas, the responsibility of those involved should be researching ownership. image: https://info.courthousedirect.com/hs-fs/file-598045265-jpg/blogimages/royalty_interest.jpg --- [![](https://info.courthousedirect.com/hs-fs/hubfs/Courthouse_Images/logo-resized.png?width=408&name=logo-resized.png)](http://www.courthousedirect.com/) - [Sign In Here](http://www.courthousedirect.com/SignIn.aspx) - [Sign Up/Pricing](http://www.courthousedirect.com/SignUpPricing.aspx) - [Download](##) - [Search Records](##) - [FileViewer](##) - [GIS Map](##) - [Alerts](##) - [Title Research](##) - Data Services ![Download](https://info.courthousedirect.com/hs-fs/hubfs/Blog%20Image%20Fix/Download.jpeg?width=5184&name=Download.jpeg "Download") ### Description Current & Historical Deeds, Mortgages, Easements, Plats, Property Info, and Oil & Gas Records in over 3,000 Counties nationwide.  - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/property-document.png)[Real Property Documents](http://www.courthousedirect.com/DocumentImageInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/deed-lein.png)[Deed & Mortgage Report](http://www.courthousedirect.com/ProductInfo/DeedMortgageInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/property-tax.png)[Property Tax Report](http://www.courthousedirect.com/ProductInfo/PropertyTaxReportInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/sale-com.png)[Sales Comparable](http://www.courthousedirect.com/ProductInfo/SalesComparableInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/property-tax.png)[Asset Search](http://www.courthousedirect.com/ProductInfo/AssetSearchInfo.aspx) - [Download](http://www.courthousedirect.com/DocumentImages.aspx)[![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/video.png)](http://youtu.be/O9JIbTsHAiU) - [Download](http://www.courthousedirect.com/PropertyReports/DeedReport) - [Download](http://www.courthousedirect.com/PropertyReports/PropertyTaxReport) - [Download](http://www.courthousedirect.com/PropertyReports/SalesComparable) - [Download](http://www.courthousedirect.com/PropertyReports/DeedReport) ![GGIndexPic](https://info.courthousedirect.com/hs-fs/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/GGIndexPic.jpg?width=155&name=GGIndexPic.jpg "GGIndexPic") ### Description Grantor Grantee Indexes and filtered searches for Counties in Texas, California & New Mexico. ###### TX Coverage : [Grid](http://www.courthousedirect.com/GeoIndex/TexasDataCoverage.aspx) [Map](http://www.courthousedirect.com/PropertySearch/Texas) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/grantee-index.png)[Grantor Grantee Indexes](http://www.courthousedirect.com/ProductInfo/GrantorGranteeInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/asset-search.png)[Adverse/Involuntary Liens](http://www.courthousedirect.com/ProductInfo/AdverseLienInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/deed-plats.png)[Releases/Satisfactions](http://www.courthousedirect.com/ProductInfo/ReleaseInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/property-document.png)[Easements](http://www.courthousedirect.com/EasementSearch.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/grantee-index.png)[Plats/Maps](http://www.courthousedirect.com/PlatSearch.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/oil-well-icon.png)[O&G Lease Check](http://www.courthousedirect.com/ProductInfo/LeaseCheckInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/geo-index.png)[Texas Marriages](http://www.courthousedirect.com/Texas-Marriage-Certificate-Search) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/geo-index.png)[Texas Divorces](http://www.courthousedirect.com/Texas-Divorce-Search) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/deed-plats.png)[Geo-Index Title Plants](http://www.courthousedirect.com/ProductInfo/GeoIndexInfo.aspx) - [Search](http://www.courthousedirect.com/IndexSearches.aspx)[![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/video.png)](http://youtu.be/rCDjuhGLYEU) - [Search](http://www.courthousedirect.com/AdverseLienSearch.aspx)[![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/video.png)](http://youtu.be/FeK8fh7RS3U) - [Search](http://www.courthousedirect.com/ReleaseSearch.aspx) - [Search](http://www.courthousedirect.com/EasementSearch.aspx) - [Search](http://www.courthousedirect.com/PlatSearch.aspx) - [Search](http://www.courthousedirect.com/LeaseCheck.aspx)[![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/video.png)](http://youtu.be/zwtkWZ4GNso) - [Search](http://www.courthousedirect.com/Texas-Marriage-Certificate-Search) - [Search](http://www.courthousedirect.com/Texas-Divorce-Search) - [Search](http://www.courthousedirect.com/GEOIndex) ![Texas1](https://info.courthousedirect.com/hs-fs/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/Texas1.jpg?width=425&name=Texas1.jpg "Texas1") ### Description FileViewer provides access to scanned indexes and image of (handwritten and typed) Real Property, Plats and Oil and Gas Records all over Texas and New Mexico [TX/NM Coverage](http://www.courthousedirect.com/docs/HDICoverage.pdf) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/deed-plats.png)[Historical Deeds & Indexes](http://www.courthousedirect.com/ProductInfo/HistoricalDocumentInfo.aspx) - [View Now](http://www.courthousedirect.com/GEOIndex/LogOn.aspx?ReturnUrl=%2fGeoIndex%2fFileViewerB.aspx)[![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/video.png)](http://www.youtube.com/watch?v=RKZxydfKTk4) ![GISMap](https://info.courthousedirect.com/hs-fs/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/GISMap.jpeg?width=5000&name=GISMap.jpeg "GISMap") ### Description Nationwide Google Maps with overlay of Tax, Sales, Mortgage, Oil & Gas Leases, Pipelines and RRC information in Texas. ### Real Estate - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/property-document.png)[Tax Maps](http://www.courthousedirect.com/ProductInfo/PropertyAppraisalInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/property-tax.png)[Tax Records](http://www.courthousedirect.com/ProductInfo/PropertyAppraisalInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/property-document.png)[Recorded Plats](http://www.courthousedirect.com/ProductInfo/PropertyAppraisalInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/mail-label.png)[Mailing Labels](http://www.courthousedirect.com/ProductInfo/MailingLabelInfo.aspx) ### Oil & Gas - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/oil-well-icon.png)[Pipelines](http://www.courthousedirect.com/ProductInfo/PropertyAppraisalInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/oil-well-icon.png)[Wells & Plats](http://www.courthousedirect.com/ProductInfo/PropertyAppraisalInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/oil-well-icon.png)[Pooling Reports](http://www.courthousedirect.com/ProductInfo/PropertyAppraisalInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/geo-index.png)[W-1 Reports](http://www.courthousedirect.com/ProductInfo/PropertyAppraisalInfo.aspx) - [Search](http://www.courthousedirect.com/GISLandingPage.aspx) - [Search & Download](http://www.courthousedirect.com/GISLandingPage.aspx) - [Search & Download](http://www.courthousedirect.com/GISLandingPage.aspx) - [Search & Download](http://www.courthousedirect.com/GISLandingPage.aspx) - [Search & Download](http://www.courthousedirect.com/GISLandingPage.aspx) - [Search & Download](http://www.courthousedirect.com/GISLandingPage.aspx) - [Search & Download](http://www.courthousedirect.com/GISLandingPage.aspx) - [Search & Download](http://www.courthousedirect.com/GISLandingPage.aspx) ![LeaseAlert](https://info.courthousedirect.com/hs-fs/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/LeaseAlert.jpeg?width=3100&name=LeaseAlert.jpeg "LeaseAlert") ### Description Email notifications of recently filed Oil & Gas related documents including Leases, Mineral Deeds, Royalty Deeds, Pooling Agreements, etc. in Texas and New Mexico. - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/deed-plats.png)[Lease Alert](https://www.courthousedirect.com/LeaseAlert/Home/HowItWorks) - [More Info](http://www.courthousedirect.com/ProductInfo/LeaseAlertInfo.aspx) [![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/video.png)](http://youtu.be/zwtkWZ4GNso) ![titleInsurance](https://info.courthousedirect.com/hs-fs/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/titleInsurance.jpg?width=155&name=titleInsurance.jpg "titleInsurance") ### Description In-depth research of ownership, minerals, liens and easements in Texas and New Mexico. This includes Run Sheets, Property Reports and Mineral Ownership Reports. ### Real Estate - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/property-document.png)[Manual Research](http://www.courthousedirect.com/Research.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/geo-index.png)[Deed & Lien Run Sheet](http://www.courthousedirect.com/ProductInfo/DeedLienRunSheetInfo.aspx) ### Oil & Gas - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/property-document.png)[Landman Starter](http://www.courthousedirect.com/ProductInfo/AbstractInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/oil-well-icon.png)[Lease Check](http://www.courthousedirect.com/LeaseCheck.aspx) -   - [Order Now](https://www.courthousedirect.com/ResearchRetrievalForm.aspx) - [Request A Quote](http://www.courthousedirect.com/OGTaxDeedMtgOrderForm.aspx/?type=deed) -   - [Request A Quote](http://www.courthousedirect.com/OGRequestQuote.aspx) - [Search O&G Orders](http://www.courthousedirect.com/LeaseCheck.aspx) ![DataServices](https://info.courthousedirect.com/hs-fs/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/DataServices.jpeg?width=4038&name=DataServices.jpeg "DataServices") ### Description Learn how we can help you get more value out of data. - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/deed-lein.png)[API Integration](http://www.courthousedirect.com/ProductInfo/APIIntegrationInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/deed-plats.png)[Starter Exchange](http://www.courthousedirect.com/ProductInfo/StarterExchangeInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/grantee-index.png)[Title Plant Building](http://www.courthousedirect.com/ProductInfo/TitlePlantBuildingInfo.aspx) - ![](https://info.courthousedirect.com/hubfs/Blog%20Image%20Fix/Mega%20Menu%20Images%20-%20Sep2018/mail-label.png)[Mortgage Marketing Leads](http://www.courthousedirect.com/ProductInfo/MortgageMarketingLeadsInfo.aspx) - [More Info](http://www.courthousedirect.com/ProductInfo/APIIntegrationInfo.aspx) - [More Info](http://www.courthousedirect.com/ProductInfo/StarterExchangeInfo.aspx) - [More Info](http://www.courthousedirect.com/ProductInfo/TitlePlantBuildingInfo.aspx) - [More Info](http://www.courthousedirect.com/ProductInfo/MortgageMarketingLeadsInfo.aspx) # What is Royalty Interest? Posted by CourthouseDirect.com Team - 21 March, 2014 - - - - - [mailto:?&subject=https://info.courthousedirect.com/blog/bid/379505/what-is-royalty-interest&body=https://info.courthousedirect.com/blog/bid/379505/what-is-royalty-interest](mailto:?&subject=https://info.courthousedirect.com/blog/bid/379505/what-is-royalty-interest&body=https://info.courthousedirect.com/blog/bid/379505/what-is-royalty-interest) ![header-picture](https://cdn2.hubspot.net/hubfs/685080/IMG-TurboSodium/Sodium%20v2/blog/woman-notebook-working-girl.png "header-picture") ![royalty interest](https://info.courthousedirect.com/hs-fs/file-598045265-jpg/blogimages/royalty_interest.jpg?width=300&height=199&name=royalty_interest.jpg)Before investing time, money and resources into the extraction and development of oil and gas, the chief responsibility of those involved should be researching ownership of the land in question. Specifically, overall revenue generated from the production and refinement of natural resources is subject to a reduction, depending on the ownership of royalty interest. ### **What is Royalty Interest?** Royalty interest allows the owner to share in the success of natural resource production without incurring the associated costs. For oil and gas companies, royalty interest payments can significantly reduce total revenue gained while risk and liability remains unchanged. There are three types of royalty interest to consider. - **Landowner’s royalty** – Belonging to the lessor, landowner’s royalty is the percentage paid to the landowner based on total revenue from natural resource production - **Overriding royalty** – Held by an entity that doesn’t own mineral interest, overriding royalties can be given in exchange for leasehold interest. - **Nonparticipating royalty** – Entities owning nonparticipating royalties cannot participate in bonus or rentals, but receive royalties on revenue generated from the production of natural resources. ### **Royalty Interest Offers Benefits for Owners** Though it almost seems unfair, royalty interest owners may receive the following benefits. - Perpetual payments - No liability to government - No cost for production - No liability for property damage - No liability for subsurface damage ### **Implications for Oil & Gas Companies** Depending on the distribution of royalty interest, oil and gas companies may bear the burden of paying for all production costs while incurring maximum liability. Found in the royalty clause of an existing lease, the owners of royalty interest are entitled to their documented share of royalties before costs and expenses are calculated. Oil and gas companies facing the rising costs of doing business may experience a significant loss in revenue.  As a result, oil and gas companies need to research ownership documents in their entirety. With regard to royalty interest, it’s essential to look for the following. - **Length of royalty agreement** – Not all royalty interest is perpetual. It can be limited by length as stipulated in the lease. - **Lease terms** – When reviewing real property documents, special attention should be paid to the [details of lease terms](https://my.courthousedirect.com/blog/bid/295730/What-s-the-Difference-Between-Mineral-Deeds-and-Royalty-Deeds). - **Three or more owners** – Thanks to nonparticipating and overriding royalty interest, a third party (or more) may be entitled to royalty payments. Depending on the total number of royalty owners, oil and gas companies may only receive a small fraction of the total production revenue. ### **Real Property Records are Essential** To avoid legal complications down the road, oil and gas companies should obtain [real property records](https://my.courthousedirect.com/blog/bid/245861/Why-do-you-Need-a-Real-Property-Report) before moving forward with project plans. Regardless of your role in the extraction and refinement of oil and gas in Texas, online record searches streamline the acquisition of detailed real property documents.  \*Image courtesy of freedigitialphotos.net [![landman survival guide blog ](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/206668/8c186349-86b5-4f65-8992-6c1a2ab04841.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/206668/8c186349-86b5-4f65-8992-6c1a2ab04841) Topics: [Oil and Gas](https://info.courthousedirect.com/blog/topic/oil-and-gas) --- ### Recent Posts By CourthouseDirect.com Team - March 08, 2021 #### What are the Features of a Title Plant? [![read more](https://cdn2.hubspot.net/hubfs/685080/IMG-TurboSodium/Sodium%20v2/blog/arrow-recent-blog-post.png "read more")](https://info.courthousedirect.com/blog/property-title-search-in-texas) By CourthouseDirect.com Team - February 26, 2021 #### What You Need to Know About Texas Public Records [![read more](https://cdn2.hubspot.net/hubfs/685080/IMG-TurboSodium/Sodium%20v2/blog/arrow-recent-blog-post.png "read more")](https://info.courthousedirect.com/blog/what-you-need-to-know-about-texas-public-records) By CourthouseDirect.com Team - November 18, 2020 #### How to Eliminate Issues Locating Child Support Liens [![read more](https://cdn2.hubspot.net/hubfs/685080/IMG-TurboSodium/Sodium%20v2/blog/arrow-recent-blog-post.png "read more")](https://info.courthousedirect.com/blog/common-issues-locating-child-support-liens) --- ### Subscribe to our updates Search [![landman ebook](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/206668/9d43f533-4304-4415-bf38-d5b8c89fe5ec.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/206668/9d43f533-4304-4415-bf38-d5b8c89fe5ec) ### Categories - [Courthouse Documents (75)](https://info.courthousedirect.com/blog/topic/courthouse-documents) - [CourthouseDirect.com (27)](https://info.courthousedirect.com/blog/topic/courthousedirect-com) - [Events (1)](https://info.courthousedirect.com/blog/topic/events) - [Finance (61)](https://info.courthousedirect.com/blog/topic/finance) - [Legal (106)](https://info.courthousedirect.com/blog/topic/legal) - [Mortgage (34)](https://info.courthousedirect.com/blog/topic/mortgage) - [Oil and Gas (133)](https://info.courthousedirect.com/blog/topic/oil-and-gas) - [Product Updates (1)](https://info.courthousedirect.com/blog/topic/product-updates) - [Real Estate (147)](https://info.courthousedirect.com/blog/topic/real-estate) ### About CourthouseDirect.com CourthouseDirect.com is committed to providing fast, accurate and affordable courthouse documents and research by using the potential of the Internet to cut costs and save time associated with obtaining public records and thereby eliminating inefficiencies and revolutionizing the delivery of courthouse information nationwide. ### Contact Info - 713.683.4000 - [information@CourthouseDirect.com](mailto:information@CourthouseDirect.com) ### Site Map - [About](http://www.courthousedirect.com/About.aspx) - [Customer Service](http://www.courthousedirect.com/ContactUs.aspx) - [My Account](http://www.courthousedirect.com/SignIn.aspx?ReturnURL=http://www.courthousedirect.com/MyAccount.aspx) - [Privacy Policy and Terms of Service](https://www.courthousedirect.com/PrivacyPolicy.aspx) - [Help](http://www.courthousedirect.com/FAQ.aspx) - [Blog](https://my.courthousedirect.com/blog) - [County Info Page](https://www.courthousedirect.com/AvailableCountyImages.aspx) - [Data Coverage](https://www.courthousedirect.com/GeoIndex/TexasDataCoverage.aspx) ### Partner Sites - [CourthouseSpecialists.com](http://www.courthousespecialists.com/) ### Research Tools - [Ownership Search](https://www.courthousedirect.com/popuptools.aspx?type=Property) - [Lien Search](https://www.courthousedirect.com/popuptools.aspx?type=Liens) - [Abbreviations](https://www.courthousedirect.com/popuptools.aspx?type=Abbreviations) - [Definitions](https://www.courthousedirect.com/popuptools.aspx?type=Definitions) ### Other Links - [facebook](https://www.facebook.com/courthousedirect/) - [twitter](https://twitter.com/chdirect) - [youtube](http://www.youtube.com/user/CourthouseAcademy?feature=mhee) - [linkedin](https://www.linkedin.com/company-beta/331351/?pathWildcard=331351) © 2026 COURTHOUSEDIRECT.COM. CourthouseDirect.com does not warrant the information contained herein. Site created and maintained by CourthouseDirect.com, Inc.