Nevada Revised Statutes 362.105 – ‘Royalty’ defined
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As used in NRS 362.100 to 362.240, inclusive, unless the context otherwise requires:
Terms Used In Nevada Revised Statutes 362.105
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mineral: includes oil, gas and other hydrocarbons, but does not include sand, gravel or water, except hot water or steam in an operation extracting geothermal resources for profit. See Nevada Revised Statutes 362.010
1. ’Royalty’ means a portion of the proceeds from extraction of a mineral which is paid for the privilege of extracting the mineral.
2. ’Royalties’ do not include:
(a) Rents or other compensatory payments which are fixed and certain in amount and payable periodically over the duration of the lease regardless of the extent of extractions; or
(b) Minimum royalties covering periods when no mineral is extracted if the payments are fixed and certain in amount and payable on a regular periodic basis.