Division Order with new spacing

[J_A_Downie]

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.

[M_Barnes]

153N-102W

The original Aune Federal well goes N-S with 32 & 29H. That spacing was 1280 since it was two sections. What was your original royalty and decimal amount on the first well? The lease may have said 40 acres, but that might be the tract gross acreage, not her actual mineral acres. Do you have exact wording from a deed or a will? Trying to work backwards here.

The new wells are going East West and go across three sections for the 1919.2 spacing acres. So whatever her net mineral acres are would be included in the new well spacings which are larger. Her decimal amount will be less, but the additional wells will be nice.