Floating Royalty
Definition
A royalty interest that is a fraction of the fee owner’s total royalty, meaning that if the owner’s royalty increases above one-eighth in a subsequent lease, the floating royalty owner’s interest also increases.
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A royalty interest that is a fraction of the fee owner’s total royalty, meaning that if the owner’s royalty increases above one-eighth in a subsequent lease, the floating royalty owner’s interest also increases.