Fixed v. Floating Royalty
WHETHER A ROYALTY INTEREST IS CALCULATED AS A FIXED INTEREST IN GROSS PRODUCTION OR A FLOATING PERCENTAGE OF LEASE ROYALTY IS OFTEN QUITE LITERALLY THE MILLION-DOLLAR QUESTION.
HOW CONFIDENT ARE YOU THAT THE ROYALTY IN QUESTION IS FIXED V. FLOATING?
Download this HELG paper to find out and get an overview on royalty interests in Texas, the differences between fixed v. floating royalties, as well as a framework for evaluating which class of royalty interest you are dealing with.
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