Property Ownership
A Texas property with an oil and gas lease has a 'royalty interest.' The royalty interest owner receives:
AA percentage of gross production revenues without bearing any production costs✓ Correct
BA working interest obligating them to share in production costs
CA share of net profits after all costs
DNo income until the lease expires
Explanation
A royalty interest is a right to receive a specified fraction of gross oil and gas production revenues without obligation to bear any of the production costs. The standard minimum royalty in Texas leases has historically been 1/8 (12.5%) of gross production.
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