Royalty Revenues & Fee Simple Lands
PrairieSky Royalty has one of the largest portfolios of Fee Simple¹ lands in western Canada. Fee Simple ownership means PrairieSky Royalty owns the sub-surface mineral rights for these lands.
PrairieSky Royalty receives royalty revenues² from third-party development of petroleum and natural gas produced from its properties.
PrairieSky Royalty does not directly conduct operations to explore for, develop or produce petroleum or natural gas.
As a result, PrairieSky Royalty incurs minimal or no operating costs, capital costs, environmental liabilities or reclamation obligations associated with petroleum and natural gas development.
¹The greatest possible estate in land, wherein the owner has the right to use it, exclusively possess it,
commit waste upon it, dispose of it by deed or will, and take its fruits.
A fee simple represents absolute ownership of land, and therefore the owner may do whatever he or she chooses with the land. If an owner of a fee simple dies intestate, the land will descend to the heirs.
The term fee used independently is an adequate designation of this type of estate in land.
The term simple is added to distinguish clearly this estate from other interests in real property.
West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
²A payment to an owner for the use of property, especially patents, copyrighted works, franchises or natural resources. A royalty payment is made to the legal owner of a property,
patent, copyrighted work or franchise by those who wish to make use of it for the purposes of generating revenue or other such desirable activities. In most cases, royalties are designed to
compensate the owner for the asset's use, and are legally binding.
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