We are only getting paid 1/3 of our mineral rights on a Directional drill, Is this normal or should we have a legal Counsel ?
You have not provided enough information for us to give you an answer. Sometimes a particular well will not involve all of the minerals you own in a section. A review of the “as drilled” plat could help answer that question if we also had information on what you own.
Ok our minerals are 0.416666 and what we were told that we get paid on pipe spacing and I really don’t understand but they are paying us 0.00520833
Hank, someone would need to know that you own X% of tract Y @ W royalty and tract Y is Z% of the total well either on an acreage or on a lateral foot basis….to tell you if anything makes sense.
Right now it seems you are saying that your minerals are 41.6% of a tract. Let’s say hypothetically that is correct. Maybe you are leased at 25% royalty, and your tract is 5% of the well length or total acreage.
.416 times .25 times .050 = .00520833. That’s one possible way somebody gets to that decimal.
It is unclear to me what “pipe spacing” means in this context. It might be easiest to call the operator and ask them to explain it to you.
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Ok Thanks for the info. I will call and see if I can get more information.