This differs from owning an actual oil lease. A lease owner in effect gets a “signing bonus” to lease their land to a producer. In addition, they get monthly lease payments from the producer whether or not that land is developed into a producing field. Royalties are available for investment only after oil is discovered, drilled, and brought to the surface to be sold. No dry holes, no capital expenses for drilling and production equipment. Only Black Gold (or Texas Tea, as Jed Clampett would say).