# Division Order Interest

**URL:** https://www.mineralrightsforum.com/t/division-order-interest/23375
**Category:** General Mineral Rights Discussion
**Created:** [May 17, 2011, 11:50pm UTC](https://www.mineralrightsforum.com/t/division-order-interest/23375 "2011-05-17T23:50:16Z")
**Posts on this page:** 7
**Page:** 1

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### Author: ![Lou\_Wheeler](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/l/278dde/32.png) [@Lou\_Wheeler](https://www.mineralrightsforum.com/u/Lou_Wheeler)
#### Post date: [May 17, 2011, 11:50pm UTC](https://www.mineralrightsforum.com/t/division-order-interest/23375/1 "2011-05-17T23:50:16Z")

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Can anyone explain how the a division order interest is figured out?

Thanks,

Lou

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### Author: ![Nancy\_Mosley](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/n/3bc359/32.png) [@Nancy\_Mosley](https://www.mineralrightsforum.com/u/Nancy_Mosley)
#### Post date: [May 18, 2011, 1:18am UTC](https://www.mineralrightsforum.com/t/division-order-interest/23375/2 "2011-05-18T01:18:51Z")

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It should be your royalty % (say a 1/8 royalty = 12.5% = 0.125)

multiplied by the % of interest you own in the mineral rights. If you own all, then 100% = 1.00

that would be 1 times 0.125 or 12.5% of the proceeds (however defined in the lease such as at the wellhead price etc.)

If you inherited from a grandparent who owned the whole interest, but there were 5 grandchildren who inherited equally, then you have 1/5 = 0.20 = 20% of the royalty %

so for a 1/8 royalty it would be 1/5 of 1/8 = 1/40 = 0.025 or 2.5% of the proceeds

The division order for the first would say 0.125 and the second would say 0.025

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### Author: ![A\_Loren](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/a/f9ae1b/32.png) [@A\_Loren](https://www.mineralrightsforum.com/u/A_Loren)
#### Post date: [May 18, 2011, 1:24am UTC](https://www.mineralrightsforum.com/t/division-order-interest/23375/3 "2011-05-18T01:24:37Z")

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Typically your “payment decimal” or “Net RI” or “Royalty Interest” is calculated by:

[your net acreage] / [the total acreage in the pooled unit] \* [the royalty % set forth in your lease]

So if you own 30 acres out of a 300 acre unit and have a 25% royalty, your pay decimal would be:

30/300\*.25 = .025. Translation: you own 2.5% of the net royalty income from the well(s) before deductions are taken from your share, if any.

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### Author: ![Lou\_Wheeler](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/l/278dde/32.png) [@Lou\_Wheeler](https://www.mineralrightsforum.com/u/Lou_Wheeler)
#### Post date: [May 18, 2011, 4:07pm UTC](https://www.mineralrightsforum.com/t/division-order-interest/23375/4 "2011-05-18T16:07:25Z")

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Thank you so much!

Lou

Nancy Mosley said:

It should be your royalty % (say a 1/8 royalty = 12% = 0.125) multiplied by the % of interest you own in the mineral rights. If you own all, then 100% =1.00 that would be 1 times 0.125 or 12.5 % of the proceeds (however defined in the lease such as at the wellhead price etc.) If you inherited from a grandparent who owned the whole interest, but there were 5 grandchildren who inherited equally, then you have 1/5 = 0.20 = 20% of the royalty % so for a 1/8 royalty it would be 1/5 of 1/8 = 1/40 = 0.025 or 2.5% of the proceeds The division order for the first would say 0.125 and the second would say 0.025

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### Author: ![Lou\_Wheeler](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/l/278dde/32.png) [@Lou\_Wheeler](https://www.mineralrightsforum.com/u/Lou_Wheeler)
#### Post date: [May 18, 2011, 4:08pm UTC](https://www.mineralrightsforum.com/t/division-order-interest/23375/5 "2011-05-18T16:08:37Z")

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Thanks so much for the info!

Lou

A. Loren said:

Typically your “payment decimal” or “Net RI” or “Royalty Interest” is calculated by:

[your net acreage] / [the total acreage in the pooled unit] \* [the royalty % set forth in your lease]

So if you own 30 acres out of a 300 acre unit and have a 25% royalty, your pay decimal would be:

30/300\*.25 = .025. Translation: you own 2.5% of the net royalty income from the well(s) before deductions are taken from your share, if any.

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### Author: ![William\_R\_Woods](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/w/f14d63/32.png) [@William\_R\_Woods](https://www.mineralrightsforum.com/u/William_R_Woods)
#### Post date: [March 13, 2012, 11:32pm UTC](https://www.mineralrightsforum.com/t/division-order-interest/23375/6 "2012-03-13T23:32:21Z")

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I have a division order question… probably need someone who knows the Texas law as it relates to ‘life estate’.

Thank you, Bill

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 4:23am UTC](https://www.mineralrightsforum.com/t/division-order-interest/23375/7 "2018-08-15T04:23:03Z")

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