I think the owner decimal is calculated NMA / total acres in the sizing unit * the royalty.
Is there another way to figure it using mineral owner percentage instead of NMA in each tract then adding it together. If there are two sections involved, are they figured separately then combined or is it just one total for everything ? Thank You
Ms. Donovan, if you are speaking of long lateral wells in ND, the spacing size is the number to calculate from because each acre shares in the royalty equally no matter where it is situated, or how many sections are involved.
RW I'm sorry to be so ignorant but are the new wells in ND the long lateral kind. And where could I find those rules or instructions ? I am in a discussion w/ an oil co. and I think they are using the mineral interest percent in each tract of land then adding them together to get the owner decimal. Thanks Again.
Fay, I remember now, you have two different royalty percentages going on. Fay, to make sure I have it correct, you have interest in the sections north of section 18, those would be sections 6 and 7 which make up the extra large spacing, only the wellhead is offsite drilled [ wellhead in one section but draining oil from a different section or sections ] in section 18, and this has a royalty different from [ going out on a limb here ] from the spacing of 18-19 ? Fay, whether the operator does it this way or not I think you need to figure the spacings seperately as one is very oversize and both have different royalty rates, then add the total from the two together to see if your numbers add up to what the operator came up with. Fay, in your place I would ask for a seperate check for each lease, for ease of accounting. If the operator will not seperate the statements or write two checks, all of the information should be on the statement with the one check they send you, you could seek out all the information for each seperate well and make sure it all adds up. The one thing I wouldn't do is take it on faith that the operator got it right, as I have seen some outrageous errors, and I guess you have too on your way to getting them to pay you. As for your wells being extended long laterals your first one is and the second almost certainly is also, will know for certain when it's off confidential.