I just received a division order for my interest in the Szalwinski unit, containing 1,067.29 acres out of the Luis Menchaca grant A-5 and the Erasmo Seguin grant A-10 in Karnes
County. my question is this, does everyone in this pool split the royalties off the Szalwinski unit or just the 225 acres where the well has been drilled? I hope that makes sense. I think I know but my brother thinks whoever is in the thousand plus acres gets a piece. oh, my total interest is 0.00042001. my acres are small 2.37 plus
Your brother is probably right. The real answer is in the lease form and the pooling declaration.
Best,
Buddy Cotten
so that would mean all wells drilled in this pool will be shared, so to speak, will be divided among to mineral owners. thanks for the quick reply
If you have a 640 acre gas unit, and out of that there is a 100 acre tract, fenced and divided from the rest of the pooled acreage, and that is where the well is situated, and owned by one owner, he doesn't get it all if he owns 100% of the minerals under that 100 acres. Everyone who owns an interest in the entire 640 acre designated unit will share in the production.
Here is the formula:
Your Net mineral acres included in the unit divided by the gross SURFACE acres in the unit gives you your tract participation factor.
You multiply the tract participation factor times the royalty provided on the lease form LESS any non-participating royalty interest or production payments owed.
The result is your decimal interest in the unit.
A blog on the matter is located here:
http://www.mineralrightsforum.com/profiles/blogs/pooling-in-texas-p...
Buddy Cotten