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Do all mineral and royalty interests lose value over time?

April 26, 2017lose Mineral Royalty time value

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Do all mineral and royalty interests lose value over time?

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Yes. Oil and gas reserves are finite, and every oil and gas well is destined to be plugged and abandoned. So, although royalty income can increase in the short term due to rises in oil and gas prices or production enhancement projects, you can be certain that your royalty checks will decline over the long run and will one day stop coming.