Glossary

Royalty owner

A royalty owner holds a share of a well's production revenue, without paying any of the drilling or operating costs, through their mineral rights.

A royalty owner holds a mineral or royalty interest in a tract, which entitles them to a share of production revenue without requiring them to pay any of the costs of drilling or operating the well. That's different from a working interest owner, who shares in the costs as well as the revenue. Royalty interests are frequently inherited across generations, and many owners don't fully understand what they hold, why their payments change, or how their decimal interest is calculated.

That knowledge gap is exactly where owner relations teams step in, helping royalty owners understand what they hold and why payments change, sometimes with a level of personal, human support that no amount of automation can replace, since some questions only get answered with a real conversation.

Heard on the show

“You also might have a service owner, a mineral owner, a royalty owner, non-participating interest owner, right?”

“knowledge is like one of the best protections a mineral owner can have. And there are organizations out there like NARO, the National Association of Royalty Owners”

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