# Net Royalty Acres vs. Net Mineral Acres
**URL:** https://www.mineralrightsforum.com/t/net-royalty-acres-vs-net-mineral-acres/25639
**Category:** General Mineral Rights Discussion
**Created:** [March 6, 2018, 9:03pm UTC](https://www.mineralrightsforum.com/t/net-royalty-acres-vs-net-mineral-acres/25639 "2018-03-06T21:03:34Z")
**Posts on this page:** 8
**Page:** 2
### Author:  [@Debra\_Stearns](https://www.mineralrightsforum.com/u/Debra_Stearns)
#### Post date: [April 23, 2019, 4:43pm UTC](https://www.mineralrightsforum.com/t/net-royalty-acres-vs-net-mineral-acres/25639/27 "2019-04-23T16:43:20Z")
Buddy, I’m trying to work my numbers into your equation. 5nma x 8 x (.25 royalty - .66501 NPRI) I would get a negative number with this equation. Can this be right?
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### Author:  [@Debra\_Stearns](https://www.mineralrightsforum.com/u/Debra_Stearns)
#### Post date: [April 23, 2019, 4:53pm UTC](https://www.mineralrightsforum.com/t/net-royalty-acres-vs-net-mineral-acres/25639/28 "2019-04-23T16:53:03Z")
Wade, I have minerals in 2 sections. One has 65.501% NPRI and the other 7.85% NPRI. I don’t understand the reasoning of why I would let my price if I sold be reduced by 50% on the one that has 7.85% NPRI or why anyone would push back when they would be getting a very good reduction at 50%. Is there something I’m not understanding?
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### Author:  [@wade\_caldwell](https://www.mineralrightsforum.com/u/wade_caldwell)
#### Post date: [April 23, 2019, 7:11pm UTC](https://www.mineralrightsforum.com/t/net-royalty-acres-vs-net-mineral-acres/25639/29 "2019-04-23T19:11:04Z")
I meant to say 50% of the NPRI burden. If there is an NPRI burden of 1/3rd of the royalty stream that is discovered, we would ask that only reduce the agreed price per acre by 1/6th, because there is still some value in potential future bonuses.
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### Author:  [@Douglas\_D\_McLallen](https://www.mineralrightsforum.com/u/Douglas_D_McLallen)
#### Post date: [April 24, 2019, 3:25am UTC](https://www.mineralrightsforum.com/t/net-royalty-acres-vs-net-mineral-acres/25639/30 "2019-04-24T03:25:41Z")
To calculate the number of net royalty acres I’m selling, I use this formula:
[acres in tract] X [% of minerals owned] X 8 X [royalty interest reserved in lease] X [fraction of royalty interest being sold].
640 acres X 25% X 8 X 1/4 X 1/2 = 160 net royalty acres.
The price per net royalty acre is $125,000 / 160 = $781.25 per net royalty acre.
So the buyer offers me $781.25 per net royalty acre. This works out to 1/4 of 1/2 of $1 million, or 125,000 for 1/2 of my royalty. It makes sense for a mineral buyer to value royalties in terms of /net royalty acre because they are in effect buying a future cash flow from the royalty interest.
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [June 15, 2019, 11:35pm UTC](https://www.mineralrightsforum.com/t/net-royalty-acres-vs-net-mineral-acres/25639/33 "2019-06-15T23:35:05Z")
Net mineral acres are calculated as your fractional interest in the gross acres. If you own 1/4 of 48 acres, then 1/4 x 48 = 12.
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### Author:  [@Charlie.Groah](https://www.mineralrightsforum.com/u/Charlie.Groah)
#### Post date: [June 16, 2019, 12:22am UTC](https://www.mineralrightsforum.com/t/net-royalty-acres-vs-net-mineral-acres/25639/34 "2019-06-16T00:22:02Z")
How does that factor in with the three other people on the 48-acre tract? I kept dividing the 12 by us four, giving us 3 NMA each. So that would mean we each have 12 NMA?
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [June 16, 2019, 1:09am UTC](https://www.mineralrightsforum.com/t/net-royalty-acres-vs-net-mineral-acres/25639/35 "2019-06-16T01:09:38Z")
Apparently the landman has determined that the four of you jointly own 100% of the 48 acres and that the ownership is the same for each person. For example, if your mother owned 100% and you are the four children/heirs. If you jointly owned 1/2 of 48 acres, then your combined total would be 1/2 x 48 = 24 and each would own 1/4 of the 24 acres.
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### Author:  [@Kenny\_DuBose](https://www.mineralrightsforum.com/u/Kenny_DuBose)
#### Post date: [June 17, 2019, 10:56am UTC](https://www.mineralrightsforum.com/t/net-royalty-acres-vs-net-mineral-acres/25639/40 "2019-06-17T10:56:28Z")
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