Royalty Detail Window

Field

Description

Royalty Type*

Choose the type of royalty that you want to create. The drop down menu is populated through entries created in the Royalty Type validation table.

Royalty ID

The system automatically assigns the royalty record a unique royalty ID. You cannot modify this information.

Product'*'

Choose the product for which you want to set up the royalty.

Convertible *

Choose Yes or No to indicate if the royalty is convertible.

Sliding Scale*

Indicate if the royalty is calculated on a sliding scale, as follows:

Yes - The royalty is calculated on a sliding scale. Enter the sliding scale information. It is possible to have a sliding scale and a fixed royalty component within the same royalty.
No - The royalty is not calculated on a sliding scale. Enter the Royalty Percent and Percent of Sales/Prod indicator.

Royalty Percent

If the royalty is not calculated on a sliding scale, enter the royalty percent.

% of Prod/Sales

If the royalty is not calculated on a sliding scale, in the first field enter the percentage of production or sales that are governed by the royalty. In the second field, indicate if the royalty applies to a percentage of production or sales amounts.

Deduction*

Note: If you select ‘Yes’ you must enter a Royalty Remark. To do so, click on Remarks and populate the fields in the Royalty Remarks window that appears (for more information see: Remarks ).

Gas: Royalty

Enter the royalty percentage to pay if the well produces gas.

Min Pay

In the first field, enter the minimum royalty payment percentage if the well produces gas. In the second field, indicate if the royalty applies to a percentage of production or sales amounts.

S/S Oil: Min

Enter the minimum royalty payment percentage if the well produces oil.

Max

Enter the maximum royalty payment percentage if the well produces oil.

Div

Enter the divisor that is used to calculate the royalty payment. In the second field, indicate if the royalty applies to a percentage of production or sales amounts.

Other: Percent

Enter the royalty percentage to pay if the well produces non-gas or oil products.

Min

In the first field, enter the minimum royalty amount to pay for non-gas or oil production or sales. In the second field, indicate if the royalty applies to a percentage of production or sales amounts.