Converting NMA to NRA

[Debra_Stearns]

Can anyone give me the formula to convert nma to nra. I own 5.09125 nma with NPRI burdens of 66.50165%, OGL 1/4 royalty. I’ve attempted to use formulas I’ve found online but the answer I get doesn’t seem right.

I also own a 1/6 interest out of 15 nma for 2.5 nma. But from what I understand the conversion to nra would remain at 2.5 nra because the royalty is 1/8 instead of 1/4. Would this be correct? Is it correct from the language below that my royalty is capped at 1/8 regardless of what the OLG royalty is?

It is stipulated and agreed that said survey contains 611.9 acres of land, so that this conveyance shall be construed to cover and include 15/611.9 fractional part of the one -eighth (1/8) royalty interest in and to the oil, gas and other minerals that may be produced from the above described land.

But it is further stipulated and agreed that the grantee shall havé no interest in the lease bonus or rentals which may be provided for in any present or future oil and gas lease, but the grantee’s interest is limited to production only, it being understood that royalties to be paid under the present or any future lease shall in no case be less than one -eighth of production of the value thereof.

I appreciate any help.

[TennisDaze]

Are you trying to determine your royalty decimal under a lease? Or what you own as either the minerals less and except the NPRI or are you the NPRI owner?

[Debra_Stearns]

I’m wanting to know how a perspective buyer of my minerals would convert those minerals with NPRI’s into NRA’s. I own minerals with NPRI burdens and also am a NPRI owner.

[TennisDaze]

Here is an explanation from Oil & Gas Lawyer Blog. Any such calculation is only one way to evaluate the minerals. The confusion is likely due to the fact that NRA is based on 1/8th lease and you have to convert for fact that you have a larger royalty rate in your lease.

Net Royalty Acres Defined

[Debra_Stearns]

Thank you for the article. I’m trying to make sense of it as to what I own.