How do they determine net mineral acres? I think it should be total gross acres /X number of mineral owners correct?
Say it’s 200 total acres split between 4 mineral owners then that would be 50 net mineral acres each correct?
If they are coming up with an odd net mineral acre per owner is that a red flag?
Thanks and happy weekend!
It sounds like they are running title and going through the deeds to determine the net mineral acres for each mineral owner. If 4 people own 200 acres equally (25% each), then yes it would be 50 net mineral acres each. Often times different owners in a tract or section have a higher or lower ownership %, it’s not always split equally.
Okay thank you. I do notice on the lease it states it separates some acreage for pooling. Do we not get paid for those acres?
I would really recommend that you have a competent O&G attorney review the lease…
there are clauses in lease forms that even people in the business don’t really know the full impact of…
I say that as someone who has been in the business for 48 years and works with lease forms on a daily basis…
You would get paid based on the production from the allocated portion of the unit that corresponds to your acreage
HERE IS A GENERIC WAY TO CALCULATE YOUR NET REVENUE INTEREST IN A UNIT
THIS ASSUMES YOU OWN 1/4TH OF A 40 ACRE TRACT AND YOUR ROYALTY IS 25%
(TRACT SIZE / UNIT SIZE) x % OF MINERAL INTEREST IN TRACT x ROYALTY = REVENUE INTEREST
(40 ACRES / 1280 ACRES) x 25% X 25% = REVENUE INTEREST
(03125) x .25 X .25 = .001953125
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