Division Order

General Mineral Rights Discussion
1

I received a Division Order and before I sign and return it, I have a question. I'm entitled to a 1/8 share, but the Division Order lists my Decimal Interest at .00173649 can this be correct?

Thanks,

John Christie

2

Is this for a well that is part of a unit?

3

It can be. The decimal interest is calculated by dividing the number of net mineral acres the landowner has in the unit by the total number of acres in the unit, multiplied by the royalty percentage under the oil and gas lease.

4


Thanks
jeremy gautreaux said:

It can be. The decimal interest is calculated by dividing the number of net mineral acres the landowner has in the unit by the total number of acres in the unit, multiplied by the royalty percentage under the oil and gas lease.

5

I have 7.9 acres on a 640 tract with royalty % of 1/8. Thanks, John Christie

jeremy gautreaux said:

It can be. The decimal interest is calculated by dividing the number of net mineral acres the landowner has in the unit by the total number of acres in the unit, multiplied by the royalty percentage under the oil and gas lease.

6

John, your numbers are off a little somewhere. To figure your decimal interest, as Jeremy said, you would take the 7.9 / 640 = .01234. Then you multiply this by .125 (1/8) and you would get .00154297 as your ownership interest. So, they are crediting you with a greater interest than you think you have. There could be a number of factors but the two most common would be that you have more minerals in this area than you thought, or the spacing unit is less than 640. Either way, you should know exactly what you own before you sign the division order. Calling the company and inquiring should give you your answer.