Property Ownership

A Mississippi oil and gas 'royalty interest' entitles the holder to:

AA percentage of gross production from oil and gas wells on the property without bearing the costs of production✓ Correct
BThe right to operate and drill on the property
CFull ownership of all minerals below the surface
DThe right to lease the mineral rights to a third party

Explanation

A royalty interest is a right to receive a percentage of gross production proceeds from oil and gas extraction, free from production costs. It is a non-operating interest—the royalty holder receives income but does not bear drilling or operating expenses.

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