I have a situation wherein Party 1 who owned 640 surface acres but only 520 Mineral Acres (and 520 RI) gifted 2/3rds (total NPRI = 346.666667) of his Royalty Interest equally to 7 children herein called Party A in the aggregate (each of the siblings received 1/7th of 2/3rds NPRI). 3 yrs after the gifting, Party 1 died leaving his 520 Mineral Acres to his wife, Party 2. Am I correct in calculating that Party 2 now owns 520 MI but only 520 RI minus the 2/3rds NPRI (520 X ⅓ = 173.333333 as her RI)?
About 15 yrs later Party 2 sells her 640 surface acres and transfers ⅓ of her MI to the new owner, Party B. Am I correct in calculating Party B’s MI as 520 x 1/3rd or 173.333333 MI but Party B’s RI as 173.333333 x 1/3rd or 57.777778 RI? That would leave Party 2 with 520 - 173.333333 = 346.666667MI and 173.333333 - 57.777778 = 115.555556 RI, Correct?
12 yrs after the sale of the land which includes the ⅓ MI to Party B, Party 2 dies and leaves her remaining MI and RI as follows: 91% to Party A (each of the 7 siblings = 91% x 1/7th or 13% of the MI (13% x 346.666667) and 13% of RI (13% x 115.555556); the remaining 9% of Party 2’s mineral estate was given to Party C (9% x 346.666667MI) and (9% x 115.555556RI), Correct?
This is a Montana property and I can find no case law that is comparable.
Your input would be greatly appreciated.