My probate has closed and the oil company has sent a new contract to be signed. I am not sure how the royalties are calculated for decimal interest. There are two well sites, American Pharaoh and Wilkerson. The offer is 0.00048972 for Wilkerson and 0.00024438 for America Pharaoh. How do I know or calculate if this is good? Also how would I negotiate a higher percentage on each?
Thanks in advance
The documents are probably Division Orders. There is no negotiation. Your decimal interest is based on your net acres, divided by the number of acres in the unit, times the royalty your mineral acres are subject to and times the percentage of perforations (if a multi section unit) that your section bears to the total perforations in the wellbore.
In Oklahoma you do not have to sign a division order as a condition to be paid royalties. That being said I like to understand their calculation.
You should provide a W-9 and direct deposit if required.
I just got the wells this month all they sent was the division order to be signed.
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