Oklahoma- Royalty Applied in Horizontal Spacing Unit

How does royalty get applied in a 640 acre spacing? Say the driller goes down the West section line (say 200 feet inside the section) all the way from North to South end, and hits at 1000 barrels per month. If I own 100% mineral rights to the NE4 of the section (160 NMA), will I get my royalty (say 20%) applied to the 1000 barrels……160/640=.25. .25x1000x.20=50 So are 50 barrels credited to me?

Lets assume you lease at 3/16 royalty, then under your hypothetical, your net revenue interest would be 160/640 x 3/16 = .046 875 00. In a spacing unit, all royalty owners share, regardless of where the production actually comes from.

Lasxl111- your calculations are correct. But remember that the wellbore may cross the section line and be part of a multi-unit or 2-640 acre units. Then you multiply that number times the percentage of wellbore perforations that your unit has to the entire length of the wellbore. That information is available after the wellbore is surveyed & information given to the OCC for verification & an Order issued.

why would this be withdrawn? I could not find this asked/answered elsewhere.

I withdrew my original post to be more accurate.

thank you, I understand. I am confused about Posting a New Topic. When I posted this one, it showed immediately. Yet I had posted one concerning the Ellis well in OK, McClain county minutes before (and originally 15 days before). Neither has ever shown up. Where do they end up?

Don’t know that answer but try again!

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