My family trust owns interest in and has leased its interests to Matador in section 17 T25-s r36-E and have 1 producing well generating royalties. Matador has continued to develop the property and just recently changed 4 wells from drilled and not completed to producing. I have not received any new division orders but I expect that in the near term I will be asked to provide Matador new orders . We are receiving 0.00564236 royalties from 112H. Is this the royalty I can expect on the new wells or will there be new calculations for each of the 4 new wells now in production. Can anyone walk me through the calculations? my full legal on my prop is S/2 OF N/2 AND NE/4 OF NE/4 OF SECTION 17, T25S, R36E, NMPM SURVEY with net minerals of 36.111111 MA
It appears as if the Dogwood 25 36 20 Federal Com #’s 104H, 111H, 122H & 124H are all drilled in the same spacing unit as the #112H (W/2 Sec. 17 & W/ Sec. 20, T25S, R36E). So I believe your interest should be identical in all of these wells, but I could be wrong.
i would like to see the calculations
I believe it would be your net mineral acres in the unit divided by total unit size then multiplied by the royalty rate.
(14.44444444/640) x 0.25 =0.00564236
It looks like only the W/2 of Sections 17 & 20 are included in this 640 acre unit and that only a portion of your minerals lie within the W/2 of Section 17 (Only 80 ac of your 200 ac gross or 40%; 36.111111 x 40%=14.444444).