I came across an old will where we received an undivided 25% in and to all of the oil, gas, coal, etc. It is an 80 acre piece of the section. This was to be divided amongst 6 people. Is that the same as the percentage the leases with an oil co. state on the lease? like 1/6 and 3/16? All of our other mineral rights just state an undivided interest… with no specific percentage.
Dear Ms. Simons,
It appears that the 6 of you collectively inherited a 25% interest in the minerals. Therefore, each one of you would own 1/6 x 1/4 = 1/24 interest in the minerals.
The other percentages that you are quoting appear to be the royalty provision in the lease. For example, if you signed a 1/5 royalty lease and there was a well drilled on you with NO pooling, you would be entitled to 1/5 x 1/24 = 1/120 of production. So, if the well produced 360 barrels of oil per day, you would have 3 barrels per day net to your interest, or expressed another way, you would be entitled to 00.8333% of production.
If you were pooled, your interest would be further diluted by the percentage that your net minerals contributed to the unit size.