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The royalty paid is a function of the net value of the proceeds from the sale of the oil, gas, or other substance, multiplied by the owner's revenue interest decimal, less any amounts deducted for taxes or other deductions. [17] The revenue decimal used to calculate the amount of an owner's royalty check is calculated with the following ...
The original owner of an oil and gas lease will sometimes retain an overriding royalty as part of a farmout agreement. For any oil and gas property, the total working interests must add up to 100%. The sum of the net revenue interests, royalty interests, and overriding royalty interests, must also add up to 100%.
As with petroleum, an initial bonus must be paid to the government at the time the lease is awarded. Annual rental fees for coal are $3 per acre. Royalties are 12.5% of the gross value for surface mined coal and 8% for coal produced from underground mines. [8]
A royalty payment is a payment made by one party to another that owns a particular asset, for the right to ongoing use of that asset. Royalties are typically agreed upon as a percentage of gross or net revenues derived from the use of an asset or a fixed price per unit sold of an item of such, but there are also other modes and metrics of compensation.
The Ohio Department of Natural Resources will receive $59.7 million in bonuses under the fracking leases and each lease includes a 12.5% royalty paid to the state for production.
As a royalty it refers to the fraction of net smelter return that a mine operator is obligated to pay the owner of the royalty agreement. The royalty is paid in variable or fixed payments based on sales revenue received by a mining operator in return for mining output. It is contingent only on the sales price and quantity of product sold. [1]
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The Porgera Landowners Association was formed in the late 1980s and incorporated in 1992. Its objectives are to represent the 10,000 landowners with traditional land around the Porgera Gold Mine and serve as a pressure group on behalf of the landowners, and to pursue landowner claims in the courts in Port Moresby .