I was sent the division orders papers for a well. I thought I had 40 net mineral acres. However, the company said that I only had 1/2 NPRI INTEREST. THEREFORE, ONLY PAYING FOR 20 ACRES! The company that sold out to this company paid me for 40acres on my lease. When I contacted the company, their Division order Analyst’s opinion said that the 20 acres was correct due to the NPRI. If this is correct, why did the prior company pay me for 40acres? Do I need to check into this further? Is the lease acres different than net royalty acres. Any help would be greatly appreciated. Thanks GW
You didn’t mention the state or county. An attorney or landman could run down this information. Probably worth the investment to recoup revenues or for peace of mind.
You may own all the executive rights but not all the royalty. Hence why you got paid for leasing all the minerals but aren’t getting paid for all the royalty as there is an outstanding 1/2 NPRI out there.
This happened to me recently. I signed a lease and got the bonus, etc. When royalty time came the division order was for 1/2 of what I expected. I called the company’s landman and he looked at the title chain said, long ago my grandfather had “conveyed” NPRI to some people, (probably relatives of mine). He knew my grandfather’s name so it seemed legit. I retain “executive” power, but when it comes to any royalties it’s divided with the others, (NPRI).