difference between mineral interest and royalty interest
A mineral interest owner also possesses the right to receive lease bonuses, delay rental payments, shut-in payments and royalties. A âroyalty interest,â on the other hand, is the property interest created that entitles the owner to receive a share of the production. A royalty interest can be created in many ways, including by virtue of a conveyance or reservation in a deed or a lease. Unlike a mineral interest owner, a royalty interest owner does not possess executive rights. In addition, a royalty interest owner does not possess the right to receive lease bonuses, delay rental payments, or shut-in payments. The diagram below demonstrates the rights possessed by a mineral interest owner in comparison to a royalty interest owner: Click here to view the table. Although the distinction between the rights possessed by each interest owner may be relatively clear, the language ...