What is a Royalty Payment?
The term royalty refers to a percentage of production paid to the owner of the mineral rights, based on the amount that Highland Rim Energy is paid for delivering natural gas to market. Royalty payments begin after oil or natural gas is produced and sold. These payments continue for the life of the well which could be 20-years or more. How and when are payments paid out? Bonus checks are typically paid within 10-business days of signing the lease agreement. Royalty payments begin only if your property is placed within a producing unit meaning, when and if oil or natural gas is actually produced and sold. The time from lease-signing to mineral production can vary from months to years and is determined by many factors. While bonus money is attractive because it is immediate and tangible, generally the royalty income is more substantial because it can last for decades. If lease my mineral rights will I have to report it as income? Yes. Highland Rim Energy will mail out IRS form 1099-MISC
The term royalty refers to a percentage of production paid to the owner of the mineral rights, based on the amount that Highland Rim Energy is paid for delivering natural gas to market. Royalty payments begin after oil or natural gas is produced and sold. These payments continue for the life of the well which could be 20-years or more. How and when are payments paid out? Bonus checks are typically paid within 10-business days of signing the lease agreement. Royalty payments begin only if your property is placed within a producing unit meaning, when and if oil or natural gas is actually produced and sold. The time from lease-signing to mineral production can vary from months to years and is determined by many factors. While bonus money is attractive because it is immediate and tangible, generally the royalty income is more substantial because it can last for decades. If I lease my mineral rights will I have to report it as income? Yes. Highland Rim Energy will mail out IRS form 1099-MIS
