Could someone please explain the terminology of: Gross acres, Net Acres and ownership % and how they can change. I understand Township, Range, Section along with NE4/NW4. We own 800 acres of rights, T7N, R61W, Section 24 NW4 is Gross acres of 160, Net acres 1.25, Ownership of 0.78125% - T7, R61W, Section 24 NE4 is Gross of 160, Net 1.87, Ownership of 1.16875%. Where I don’t understand is how net acres and ownership % change, and within the 160 gross acres where do the “our” rights fall into along with 1) Can you find other owners & % of ownership 2) Does it ever all add up to 100%. I left out 480 acres to simplify the question. Any other definitions of the land terms would be welcomed.
Thank you, John
In your first example in 24-7N-61W. The NW/4 contains 160 acres. It sounds like your ownership is listed as an undivided 1/128th share of that 160 acre tract of land. 160/128 equals 1.25 acres. So you own 1.25 acres within that tract or 0.78125%. You said you own 800 acres of rights, when in reality you own a percentage of 800 acres of tracts. Based on the parcels you have listed, I would guess you own about 7.5 acres of rights. Your percentages on the other areas, however, might be different.
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I’m not sure how Colorado records are listed. In Oklahoma it would be difficult without a title search at the county where they are. Recorded leases, and deeds will usually lead you there.
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yes, it should all add up to 100% when you get all of the owners found and their Net Mineral Acreage.
It’s possible there’s an irregular number of gross acres in the NE/4 but usually it’s referred to as a “Lot” if irregular in size.
Suppose there’s any chance the 1.87 is where somebody inadvertently transposed the numbers?
Ann,
I don’t believe so as net is listed on an endorsed, accepted lease by Noble. But your question raised an issue I hadn’t noticed after applying Mr. Howell’s explanation, can a section have a different number of owners, and what does “an undivided” share mean?
Thanks for your interest and help. John
Ann Whitchurch said:
It’s possible there’s an irregular number of gross acres in the NE/4 but usually it’s referred to as a “Lot” if irregular in size.
Suppose there’s any chance the 1.87 is where somebody inadvertently transposed the numbers?
It’s probably not a transposition however I found an error on division orders for my husband, his brother and two cousins a few years ago. The company had been paying incorrectly for several years.
The initial title work is normally done by a Landman before minerals are leased. If a successful well is drilled, then another title check is done - this time by a lawyer - before any money is paid to royalty owners and this title check is supposed to be very thorough. However…errors can happen.
An example of undivided interest is: I own a 5 acre undivided interest in 100 acres, therefore I own 1/20th of the 100 acres. I do not own a particular 5 acre tract.
A section can have unlimited owners.
John Davids said:
Ann,
I don’t believe so as net is listed on an endorsed, accepted lease by Noble. But your question raised an issue I hadn’t noticed after applying Mr. Howell’s explanation, can a section have a different number of owners, and what does “an undivided” share mean?
Thanks for your interest and help. John
Ann Whitchurch said:
It’s possible there’s an irregular number of gross acres in the NE/4 but usually it’s referred to as a “Lot” if irregular in size.
Suppose there’s any chance the 1.87 is where somebody inadvertently transposed the numbers?