What do "royalty interests" allow landowners to receive?

Royalty interests allow landowners to receive payments based on the production of oil and gas extracted from their land. When a landowner grants a lease to an oil or gas company, they typically retain a royalty interest, which entitles them to a percentage of the revenue generated from the produced resources. This financial benefit is crucial for landowners, as it provides them with income without incurring the costs associated with drilling and extraction.

Other options do not accurately describe the nature of royalty interests. For example, while full ownership of land and minerals may be desirable, royalty interests refer specifically to payments rather than ownership rights. Additionally, royalty interests provide financial benefits rather than no financial returns, and they do not confer exclusivity in drilling rights. Such exclusivity would typically be associated with the leasing of additional rights, separate from the royalty structure.