royalty claim dispute

I have just been reading an article in about the royalty claim by Fitzroy River Group.They are claiming that the royalty is 2% off the top.Such a royalty is called an over-riding or gross royalty and is pretty rare.Normally a royalty is calculated after certain costs are deducted, and are called a net royalty or net operating royalty, or even a net profit royalty which allows even more costs to be deducted.
I have seen many disputes over the years regarding royalty payments. They usually happen because one of the parties does not know much about how to draft a royalty agreement, or they bought the royalty off another company and didnt know what they were getting.
I dont know the origin of the BRU royalty agreement but would expect Eric to fully understand what he signed up for.I would be very surprised if it were a gross or over-riding royalty.
As an aside it is worth noting that the article was in todays West Australian and is one of the very few they have ever printed about BRU.I suspect this is because the hacks at the West get hand fed info by Perth brokers who are busy pushing their own stocks no matter how bad they are.