I have 55NMA in Sec 11-7N-7W and own 110 acres in the NE/4,NE/4 how is my interest in the well figured? Since the well is only 380 FEL of the section, how is the royalty figured. Also it is going under Sec 2 where I also own 60NMA The well is also on land I own and under land I own. Can anyopne explain. I have attached the map.
Your decimal interest will be figured on your mineral acres. The formula is: net acres/spacing acres x royalty x % perforations in your section.
In this case, only part of the well will be in 11. It was spaced at 640. I am just eyeballing at the moment (the final determination will be done after drilling), but it looks like about 30% in 11 and 70% in 2 So you have most of the input that you will need to fill in the rest of the equation. You would calculate each section independently and then add them up.
Call Camino and ask for division order, they can explain how your interest in calculated. If you feel your interest is different than described, you will need land work completed which could cost a few thousand dollars. Please understand, title for the entire section(s) is pulled together in the courthouse against the sections current index, a detailed ownership report is reviewed on multiple levels before the operator petitions the Oklahoma Corporation Comission for drilling, spacing permits. Consider getting a mineral management company if you own mineral interest in multiple areas, happy to support further if needed 405-255-8936.