how do mineral rights versus royalty rights work, etc. Can you recommend a good primer on that subject?
Answer Hello Tom. Mineral interests and royalty interests both involve ownership of the minerals under the ground. The main difference between the two is that the owner of a mineral interest has the right to execute leases and collect bonus payments and the owner of royalty interests does not execute leases or collect bonus payments. They both receive a portion of the income once the well is producing, but only the mineral owner receives an up-front bonus payment. Royalty interests are also real property interests which can added to a lease of the minerals if one wishes to obtain the consent of the royalty owner to any future pooling of the property. Here is a link to an interesting website which has additional information and a tutorial on minerals and royalties. http://www.americanroyaltycouncil.com/Portals/_default/Skins/ARC/tutorials/owner… As far as Texas law is concerned, check out this excellent outline of Texas Oil and Gas law: http://www.beardenlawfirm.com/Texas%20Oil%20and%
