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Home  |  Education  |  Royalties vs. Signing Bonus

ROYALTIES vs. SIGNING BONUS

Royalties are the share of production or proceeds reserved to an oil and gas owner under the terms of an oil and gas lease. It is established in the lease by reserving a royalty which is usually expressed as a fraction of production. The royalties are paid over a period of time once drilling and production begins and as long as natural gas or oil continue to be produced.

Signing bonuses are fees paid in cash or check that are "immediate payments" as an incentive for committing your lease to that company. The signing bonus is a great way to receive upfront payment for your land.

For more information on Royalties & Signing Bonuses, please contact your local DPS Penn office and speak with one of our representatives.