A share of gross production from a property, measured by the net profits from the operation of the property. Such an interest is carved out of the working interest and represents an economic interest in the oil and gas produced from the property. Sometimes referred to as net royalty.

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A contractual arrangement under which the beneficiary, in exchange for consideration paid, receives a stated percentage of the net profits. That type of arrangement is considered a nonoperating interest, as distinguished from a working interest, because it does not involve the rights and obligations of operating a mineral property (costs of exploration, development, and operation). The net profits interest does not bear any part of net losses.