Offer to sell lease

New Mexico Mineral Rights San Juan County, NM
1

Advice about selling lease Location: Township 23N, Range 6W

  • Sec 14: NWNW
  • Sec 15: NWNE, N2NW, SWNW,
2

Hi again, Prop in WARD COUNTY, TX ; LOT 1 BLK I, ! Received an offer, fishing trip; I noticed the reference Of 96.57 NRA ; first our acreage is smaller, and I have Not seen the letters in this form before? NRA

COULD some one identity why the acreage error and identify NRA, Please and thank you. Mike

3

NRA is Net Revenue Acres. It is commonly used by brokers who are using 1/8th as a standard royalty.

[acres in tract] X [% of minerals owned] X 8 X [royalty interest reserved in lease] X [fraction of royalty interest being sold/leased].

So if you have 10 acres at 1/8th royalty, you have 10 net royalty acres. If you have 10 acres at 1/4th royalty, you have 20 net royalty acres.

So in your case, you probably have less mineral acres than the 96.57 net royalty acres because your lease is larger than a 1/8th royalty.