Royalty [Oil and Gas] Law and Legal Definition

According to 30 USCS § 1702 (Title 30; Mineral Lands and Mining; Chapter 29; Oil and Gas Royalty Management), the term "royalty" means “any payment based on the value or volume of production which is due to the United States or an Indian tribe or an Indian allottee on production of oil or gas from the Outer Continental Shelf, Federal, or Indian lands, or any minimum royalty owed to the United States or an Indian tribe or an Indian allottee under any provision of a lease.”