I got mineral division order today and think the decimal is wrong. What should it be? I have 10 acres multi unit well and my lease is 1/5 with a 50 percent well split.
If this section is a true 640 and a true 50/50 split, then your decimal should be .0015625. That being said, if your interest is in the western or northern bordering sections of the Township (i.e. Sections 1, 2, 3, 4, 5, 6, 7, 18, 19, 30, 31) then there is a good possibility that your section is not a true 640. If you can supply the Section, Township, and Range I can tell you if it is a true 640 section.
Many of the current horizontal wells are pooled at 1280 acres (or less) (the amount pooled is shown on your Division Order) so your % would go down by 50% of an amount calculated based on 640 acres. It sounds like you have 5 net mineral acres (or less—if you have odd shaped Sections) in ~1280 acres. And of course you would use your Royalty percent (1/5) against this. Get the numbers off your Division Order and
((your NMA) / (Total area)) x (1/5)
close to 0.000781???
I am not a Landman or Oil Prof or attorney—just an interested forum member.
Texhomex has the correct decimal interest. Very few units are 1280 acres. Most are multi-section units. Therefore, the calculation is: Net acres divided by unit size times royalty times your Section’s percentage of the multi-unit size. Or 10/640 x 20% x 50% = 0.0015625. This assumes your unit having 50% of the wellbore perforations.
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Keep in mind that a division order is not technically required in Oklahoma. But make sure they have your W-9, address, contact information, and direct deposit if offered.
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