Depletion refers to a non-cash deduction that accounts for the reduction in value of an income-generating natural resource, such as minerals, oil, gas, or timber.
Fracking, also known as hydraulic fracturing, is an oil and gas well drilling technique used to enhance the flow of natural resources. While it significantly boosts well production, it has sparked debates due to its environmental implications.
A Mineral Lease is an agreement that grants the lessee the right to excavate and sell minerals or remove and sell petroleum and natural gas from the lessor's property in return for royalty payments.
Royalty refers to the payment made to a property owner for the extraction of valuable resources from their land. Common in resource extraction industries like mining, oil, and gas, these payments are typically a percentage of the revenue generated from the resource.
