Owner Decimal Interest

This is what the landman telling me about my decimal point. However my result is 5 times higher than what the landman using. Can I get some help?

237.4718 acres (subject to 1968 partition agreement)/687.752 total unit acres x 1/5 royalty (based on your lease terms) x ½ of 1/5th (the proportionate share of royalties subject to the partition agreement owned by you and your brother), or .00690573, which is the decimal interest reflected on your checks.

(237.4718 / 687.752) X (1/5) X (1/2) = 0.034528696 decimal point

I suspect the landman is saying, whether correctly or not, that when the partition agreement was done, the parties did not own all the minerals but only owned 1/5 of the minerals.

If you (the parties) own all (now 1/2) the minerals, then your nri calculation should be correct.

It would appear, based on what the Landman is showing, that you and your brother own 1/2 of 1/5th of the minerals rather than 1/2 of the minerals as you are showing.

Ask the Landman if you and your brother own all the minerals in the tract and have him to explain.

Another way to look at it is that you think you and your brother own 237.4718 net acres while the Division Order Title Opinion only gives you credit for owning 47.49436 net acres together. Ask the landman to provide that potion of the Title Opinion that reduces the 237+gross acres to 47+ acres. Then check it against your title documents. Maybe the operator's lawyer made mistake. It's happened before when documents don't get made or recorded properly. At lease you will know that something hasn't been forced upon you for the benefit of others..

Thanks for your reply. How do I check with title documents?


If you inherited, look for a deed of distribution from the executor or personal representative of the giver. If there was no will naming the minerals, you may have inherited by state law. To be sure, ask an abstract company in the county to run you title through grantor/grantee records. That will require names and aliases of every ancestor you have record of. It shouldn't cost much and you know you are in for some revenue anyway. If your land is in OK, you may be able to register with the county and get its records for very little money and do the research yourself. If you live in the county or close by, the county clerks will usually be very helpful in chasing title down.

Your objective is to find out what documents are of public record putting title into your ancestor's name and then following the distribution of ownership of public record down to you. If you find gaps into your name, you best hire a local attorney with real estate experience to help you document the gaps.

You could also send a letter to the operator disagreeing with the landman's calculations and requesting the title backup backup from the operator's lawyer as it applies to your parcel. If it makes sense to you, fine. If not, you will still have to go to county records, personal records and family records to prove your ownership.

It is best not to rely on the bonus amount paid per net mineral acre at the time of leasing. Those title searches are done in a rush and rarely as accurate as a division order title search.

You and your brother should share the costs and may want to ask a local geologist or engineer to give you some idea of the potential revenue you may be leaving on the table. Join the county group and provide the well name and location. There are some pretty sophisticated owners on MRF who may be able to help.

sherry lee said:

Thanks for your reply. How do I check with title documents?