I received a D.O. from Lance Ruffel Oil and am confused. The R.I. is for .06 %, and the Lady I spoke with said the math was as follows: 64 divided by 240 X .25, which is .06 %. She couldn’t explain the numbers, and I have 64 acres in this Unit. That is the only number that made sense to me. Any help would be appreciated greatly.
The equation for a division order is: net mineral acres (64) / actual spacing acres (240) x royalty (25%). 64/240 x .25 =0.06666667. Make sure you get the complete decimal amount.
You do not have to sign a Division Order in OK. Many of us do not do so as it can give some rights away. You can send a “letter in lieu” and a W-9 instead, They want the W-9. Use the magnifying glass above to hunt for a “letter in lieu” template letter that I posted a few months ago.
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Mrs. Barnes, Thank you so much for your help.
Do they not teach arithmetic any more. As M_Barnes says, your interest is 0.067 and that is 6.7% not .067%
Okay, I want to be sure I have it clear. The amount of oil produced by the well in a given month times the price of oil for that month, times my R.I. = my check for the month minus taxes. Am I close? Again, Thanks
Your decimal stays the same unless there is a title change. Your revenue will be your decimal times the gross revenue received by the operator, so could be oil, natural gas liquids, gas or condensate. The deductions will be according to your lease. If you have a cost free lease, then only taxes taken out. It you have a lease that allows deductions, then those will be taken out as well.
Try not to bother you again, I do appreciate the help greatly. Martin
Okay, I’m going to have to ask another question. I started to make out the “ letter in lieu of” and there is no owner number on the D.O. I apologize for all the trouble, but I’m lost.Or should I send my info to one you folks with experience in these matters and pay you to fill it out. Please advise. Thanks greatly, Martin
Also, the TIN number, I presume I can use mine and my wife’s SS numbers.
Odd, it should have an owner number. Only put the SSN of the mineral owner. If you own it jointly, then use both.