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.
1) 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.
2) yes, it should all add up to 100% when you get all of the owners found and thier 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 inadvertantly 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 inadvertantly 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 inadvertantly transposed the numbers?