Royalties

Royalties
(coal)
  Payments from a lessee to the lessor, for the use of the lessor’s coal resources. Payments are made in money or in for a stated share of production from the lessor’s mineral deposits. Royalty rates may be expressed as an established minimum, a sliding-scale, or a step-scale. A step-scale royalty rate increases by steps as the average production on the lease increases. A sliding-scale royalty rate is based on average production and applies to all production from the lease.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary

Energy terms . 2014.

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