Hello All,
How do you figure the net mineral acres in a piece of land ? Thank You,
Fay Donovan
Dear Fay,
Net Mineral Acres is defined as the product of mineral interest multiplied by surface acres.
Oil and gas leases pay the lessor the rents and royalties based upon the net mineral acres that they own. Many mineral owners do not own 100% interest in the minerals. Thus, the net mineral acreags is the total number of acres times the percent of ownership in those minerals For example, if you own 25% of the minerals in a 100 acre parcel, you own 25 net mineral acres. If the lease offers to pay you $100 per acre for that 100 acres, you are paid on the net acreage. Therefore, you rent would be $2,500 for the year.
Hope this helps.
Jean Pledger, Esq. Ehrlich Pledger Law. LLP
The lingo is often "25 nma's in 100 g.a.", i.e. 25 net mineral acres in [or under] 100 gross acres.
You will have more bargaining clout in negotiating for 40 nma's under 80 gross, for example, than you would if you owned 40 nma's in 640 gross acres.
Thank you to all.
I suppose that I take the total acreage, and multiply by the offer and then derive my share times the fraction of the mineral rights. Is that correct? I am an absentee owner, and the most recent offer for Creek County looks a bit too good. Thanks for the help. Rose
Buddy Cotten said:
Dear Fay,
Net Mineral Acres is defined as the product of mineral interest multiplied by surface acres.
Buddy Cotten