I did get the title opinion yesterday from the oil company. I had 5 tracts, but they did not add up to the 230 acres I have a mineral deed for. I am still .875 acres short. There were no requirements or comments in the title opinion. I did use the above formula but on the total acres. Wouldn’t that be right? My next step would be to follow Buddy’s advice and get a title abstract and oil and gas attorney. Thanks for your help.
I agree with Mr. Cotten but I would also say that Division Orders are sometimes confusing. Some of the oil and gas companies I do work for have some very confusing Division Order paperwork. I would try to isolate and identify a couple different numbers.
(Forgive me if I’m telling you info you already know and have calculated.) If you have .875 acres you should divide your acreage interest by the total number of acres in the unit. Then, if you have leased, your interest is further reduced by multiplying times the royalty rate.
An example: .875 acres in a 400 acre unit = .0021875 is the percentage of unit ownership. Now your revenue interest is arrived at by multiplying (if you have a lease) by the royalty amount in your lease. That should be the fractional number you see in the Division of Interest (Division Order) paperwork.
Anybody feel free to correct me on my calculations if I have forgotten anything. I’m not sure why I’m trying to do this at 7:30 on a Saturday…
Cliff Williams