America’s conversation place for mineral owners
Now if you guys could just give us THAT formula, were all be grinning!! Linton
I usually ask for NPRI burdens that are discovered during the title search to reduce the per acre price by 50%. Buyers usually push back and argue the property is unlikely to be leased again and their is little value in the potential bonuses.
A simpler formula for calculating your royalty acres is:
1/8 - 1.0 royalty acres per NMA
1/6 - 1.33 royalty acres per NMA
3/16 - 1.5 royalty acres per NMA
1/5 - 1.6 royalty acres per NMA
9/40 (22.5%) - 1.8 royalty acres per NMA
1/4 - 2.0 royalty acres per NMA
Thank you, this has proven to be very helpful to me.
How do you calculate net mineral acres if you don’t have a copy of the lease?
The lease usually doesn’t state NMA, you’ll have to ask the company who owns the lease or have title run by a landman to figure it out.
Thanks but the operator won’t send me the lease and I have already run title.