Newbie Question re: Wharton Unit in Gaines County


#1

I’m really new at this so please excuse the stupid question.

I inherited royalty interests from my mother and I found a Royalty Deed that says E/2 NE/4, Sec 10, Blk. A-23, PSL Survey, Wharton Unit. Her interest was .00415906. Divided by 3 my interest should be .001386. I haven’t received a check in a long time but got one today from Sabinal for .00000768. Can anyone tell me how to sort this all out?


#2

Most likely the interest is being reduced on the basis of tract participation in the unit. For example, if you own a .015 interest in the NW/4 of Section 1 but the NW/4 only comprises 10% of the total unit acreage then your interest would be reduced to .0015 (being .015 * .1 = .0015).
A division order analyst should be able to explain exactly how they are breaking down your interest if you contact the oil company operating the unit.