It sounds like they are running title and going through the deeds to determine the net mineral acres for each mineral owner. If 4 people own 200 acres equally (25% each), then yes, it would be 50 net mineral acres each. Oftentimes, different owners in a tract or section have a higher or lower ownership percentage; it’s not always split equally.
Okay, thank you. I do notice on the lease it states it separates some acreage for pooling. Do we not get paid for those acres?
I would really recommend that you have a competent oil and gas attorney review the lease.
There are clauses in lease forms that even people in the business don’t really know the full impact of.
I say that as someone who has been in the business for 48 years and works with lease forms on a daily basis.
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You would get paid based on the production from the allocated portion of the unit that corresponds to your acreage.
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Here is a generic way to calculate your net revenue interest in a unit.
This assumes you own 1/4th of a 40 acre tract and your royalty is 25%.
(Tract size / Unit size) x % of mineral interest in tract x royalty = revenue interest
(40 acres / 1280 acres) x 25% x 25% = revenue interest
(0.03125) x 0.25 x 0.25 = 0.001953125
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