First, recent Texas cases have interpreted NPRI language in different ways. It is possible that a reference to traditional 1/8 may end up being applied to royalty rate in the underlying leases and so be based on 1/4 or 20%, etc. It depends on the exact wording of the deed as a whole. Second, assuming that your numbers are accurate and that your NPRI is across all the acreage for the producing well (such as 640 acres for the well and your NPRI is in all 640 acres), then your royalty DOI is 0.0000726 in the well. For oil and gas sales of $1,000,000, your royalties are $72.46. If a well produces 1,000 bbl/day for the first month X 30 days X $70, sales are $2,100,000 for that one month and your royalty is $152.46. Third, I think that the proper calculation of royalty acres would require that your royalty decimal be divided by 0.125 (which is 1/8th). Fourth, an offer of $2,800 for 1.6 acres is $1,750 per royalty acre. That seems seriously low, but someone more familiar with Fisher County will have a better idea. Fifth, NEVER sell any minerals with the possibility of revised price. Finally, whose name is on the deed? If the deed is already in your name then your title will be clear. Otherwise, how many generations between you and the named owner on the deed? It may be very easy to clear up. Bottom line, you are indeed going about this backwards. Offers come along every day and this will not be your last and only option.
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