I was wondering if someone could explain why it says on the lease agreement gross 160.00 net 3.34 I don't understand this. I understood that between my brother,sister and 2 cousins we had 20 acres. After my Grandfather died something not good happened to the estate he left for the bank to take care of, lets just say money disappeared. My Mom and Uncle could'nt afford to hire anyone to help them so we never found out what happened. So I'm wondering if there are more acres of mineral rights my Grandfather purchased that someone who is not family are collecting on. Kim Lamphear
Kim:
The gross 160 acres/3.34 net acres means that you own 3.34 mineral acres of the total 160 gross acreage. The 3.34 net acreage might reflect your portion of the acreage left by your Grandfather, if there are four others sharing the minerals. I know that 3.34 X 5 does not equal 20 acres but how sure are you that the total mineral acreage left by your Grandfather was 20 acres. You can always research the records at the County Clerk's office where these minerals are recorded if you are in doubt about these figures.
Kim,
I can only help you with your first sentence. The "gross" (gross acres) refers to the surface acres of the tract(s) mentioned in the lease. The "net" refers to your "net acres" or "net mineral acres" (NMA - not pronounced "enema") in the tract(s). It is possible that you could have a different mineral interest in each tract. If so, then your NMA will be different for each tract even if each tract has the same surface acres. NMA is calculated per each tract: surface acres of the tract X your mineral interest in that tract = your NMA for that tract. You can then multiply the total of the NMA's by the amount the company is paying you per net acre to arrive at the amont they should be paying you.
160 acres could be the total of several tracts but 160 is also 1/4 of a typical one mile square section having 640 acres. So, every time I see 160 acres I assume it is 1/4 of a 640 acre tract.
I hope this is clearer than mud and I guess that you can get a landman or an attorney to sort out the rest.
Good luck.
On my laese it says that I have 900.00 goss acres and net acres 1.0000
Why does it say 900.00 gross acres?
The 900 gross acres refers to the surface acreage of the tract(s) listed in the lease.
If a section is 640 then howdoes this apply to my mineral rights?
I have mineral rights in 4 different sections.
Wilson Inc said:
The 900 gross acres refers to the surface acreage of the tract(s) listed in the lease.
Rodney:
If you have mineral rights in 4 different sections, it will depend upon your net mineral acreage in each section. When a permit to drill is issued, a spacing unit will be set. Some spacing units are 640 and others are 1280 acres. This net mineral acreage will be divided into the spacing unit size in order to calculate your royalty payments. If you want to plug some figures into a calculator in order to see what the daily royalty amount will be in your case, goggle "Mantra Land Services" and there is an oil and gas calculator where you just fill in the blank. Hope this helps.
Rodney Gene Black said:
If a section is 640 then howdoes this apply to my mineral rights?
I have mineral rights in 4 different sections.
Wilson Inc said:The 900 gross acres refers to the surface acreage of the tract(s) listed in the lease.
Rodney,
Did not mean to confuse you. In the area where my minerals are in Texas a section is typically 640 acres but any tract of land designated as a section can have any amount of acreage. One of my sections has only 9 acres in it. Hope this clears things up.