My family just found out we that we had wells that were drilled last year and have flowed over 300,000+ barrels +. looking up the wells in the rail road commission EOG have permits and actually maybe 5-7 should be online this month. We haven't got a royalties check yet. Land-man for an Attorney contacted us looking for ratification paper work to be filed. My grandpa bought these in 1981 and have 10mineral acres of 2560 in the deed. A oil lease was signed to ray Kim III and RR are 1/6th. I don't know how to find out what the current contract is and royalty rate is. I do know there is a small well that has produced a small amount of oil over the last 25 years maybe like 13000 barrels over that time frame. What is the next step? I called the company and they said they are waiting on the title opinion. Is this why he land man called? I found the actually company land man over the actually field but he wont return my calls. EOG wont let me know anything because they have no title opinion. All i know is these well that were drilled last year are monstrous wells and looks like there is several more to be drilled. I see a bunch of rustler wells being drilled in B unit and two wells called wrangler unit. Anyone have idea on this area in district? I'm trying to find out how to see what are interest is. 10acres of 2560 would be .0039. Thanks
The deed states 10/2560th. What does this mean? 10 net mineral acres across the entire 2560 acres? So would my mineral interest be .0039%? So would i take the .0039 x the royalty rate of 1/6th and then by acres the well sits on and total acres? I see that the well says 320 total acres. The well names are Rustler unit A 3H and 4H. I'm trying to calculate close to what the division order decimal interest should be. Also if a certain well shows to be in the abstract and block and section does that mean you will get interest in the oil?
these 2560 acres are in four units 25,26,35,36.
We would need to see the deed language to be certain, but likely your interest is "undivided" across the 2560 acres. So, you own 10/2560 * 1/6 royalty = .00065104 revenue interest in production in any wellbores located within those 2560 acres. That is, unless certain wells extend across other sections where you don't own minerals (pooled or unitized leases/lands or allocation wells), then your revenue interest would be diluted in those wellbores.