I know the calculators use the size and the share % of the rights and the royalty %.
What I'm looking for is what is the take home amount after Mr oil company takes the fees and cost out on a straight 1/8 % royalty on a barrel of oil ?
If Kern oil sold for $80 a barrel you would think Oh I'm getting $20. I would like to know how much would you most likely get after they deduct all the charges ?
Thank you
Shane
It depends on your mineral interest under the spacing. If you own all the mineral rights leased at 1/5(20%) you are correct.
A good lease puts the fees and cost on the producer.
Well I guess You would say I dont have a very good lease, It looks like fees are taken from the sale of produced oil and gas, including a reasonable charge for dehydration, cleaning treating and transportation to the treatment plant, however oil may or may not be treated. I did employ a oil and gas attorney to help with the lease and they said I had a very good lease for the area.
I looked at my lease again and it is better that I thought. I do not pay fees. I would like to know the spacing. My lease says it could be up to 640 ac. bu the state says on well for 40 ac spacing, but the pools seem to be one section 640 ac each. Yet they plan 3 wells on a 3 ac pad on our 80 ac. My attorney said they may lease more land if they have good play. and I may have to wait until then to know the spacing.
$80 oil X 1/8 (12.5%) = $10 less deductions and if no deductions then less taxes. You can probably google what the production, extraction or severance taxes are for Ca.