Division orders

Received division orders on well from CWEI (Sec 27 Blk 51-TS8). Estate owns 320 acres (surface and mineral) of the 640 total acres. 25% royalty interest. Our part of the 320 acres is 1/6 undivided interest. If I figured the DOI correctly it would be 1/6 (our interest) x 25% (royalty interest) x 320/640 (estate interest). My figure is around .0208 compared to their figure around .0052 Have I misfigured the DOI? I was just wanting some information on whether I am correct or not before contacting CWEI on Monday.

There is another 1/4 dilution iin there somwhere. Either there are four owners in your 1/6th interest, or you are in a larger unit than 640 acres, most likely.

What could the other 1/4 dilution be? Could that be found in the original lease?

Mel- You could check there, but it is likely one of the things I listed above. Look under Mineral Help above, and there is a royalty calculator feature.

Your lease will list the gross acres in which you own an interest and will not specify whether it is 100% or some lower percentage. Per DI, there were 3 60-month leases in 2008 and another 5 leases in 2011 thru 2013 in that section (all 8 leases are under different names). DI does not necessarily include all leases in any particular section. So most likely, your lessor did not own 100% of the minerals in the 320 acres.


We are the other owners in this section. You can contact me at cleat@3ckland.com.

Cleat Stephens