Checking the box for "oil and gas" will report 15% of your royalty income as percentage depletion. Depending on the purpose of the extraction, the depletion rate may be different, in a range from 7% to 22% (see 26 U.S. Code § 613 - Percentage depletion for a complete list).
If you choose to use a different percentage, you can enter this as a miscellaneous expense for the royalty property instead of choosing the default 15%.
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