My mother received a division order for four Oasis wells (Lake Trenton Federal 5302 21-31 2B-5B). She has 40 acres on in the S1/2 of the SW1/4 of Section 32 (The other 40 mineral acres are owned by previous owners). This is a 1920 spacing and all the 40 acres are included in the new spacing. Until the above wells went active she was receiving royalties for all 40 acres from AUNE FEDERAL 32-29H. She received a division order this week for only 20 acres. My brothers and I are questioning why her NMA would be cut in half. Below are the reasonings we received from Oasis. I fail to see why the existence of a previous spacing has anything to do with changing the NMA. I would think that the only thing that changes would be in the decimal interest.
Any expanation or advise would be appreciated.
Thank you,
The Division Order NMA is proportionately reduced as to the acres the parent unit contributes to the multi-unit well. I have included your calculation below.
Your mineral interest .50000000 multiplied by the acres in the tract your interest derives from which is 80 acres multiplied by 640/1280 which is .5 equaling a net mineral acres total of 20. Owners are allocated at 50% due to prior established spacing.
