Oil and gas lease royalty is the share of the oil and/or gas production reserved by the lessor/mineral owner in the lease.  The royalty amount is negotiable but is usually set by the person or company offering to lease.  The amount typically runs from 12.5% (1/8) to 25% (1/4), with lease royalty offers in undeveloped areas usually being 1/8 and lease royalty offers in developed or competitive areas running from 1/8 to 1/4.  The royalty amount, along with the bonus amount per net mineral acre, are two of the main negotiable terms of an oil and gas lease offer.