Recently discovered mineral - royalty interest question


We discovered we own a very small mineral-royalty interest (reserved in a 1928 warranty deed when the property was sold in 1928). The 20 acre legal description is N/2 of Section 25, Block 2, H&GN RY. CO. Survey. The exact language in the Warranty Deed is: “Grantor herein expressly reserves to himself one thirty second (1/32) interest in all oil, gas or other Minerals on, in or under, or that may be produced from the land herein conveyed, said one thirty-second (1/32) interest being in the nature of a royalty interest, which means that grantor herein shall receive the said one thirty-second part of said minerals if, as and when produced, without cost to said grantor”. BTA Oil has recognized it and division orders have been signed - Question: is this part of a larger unit and will we also receive royalty payments for production within the unit outside of the original 20 acres or is it limited solely to production within the 20 acres?


Not sure if that interest is part of a larger unit or not, but if it is, you will receive you proportionate share of your 20 acres in relation to the larger unit. Your interest will be pooled in a unit and each parcel (I am calling your 20 acres a parcel) will be combined or partially combined to form the unit.


The Arpent 1H is a 303.8 acre unit covering Tracts 4 and 5 of 120 acres each, Tracts 1 and 2 of 20 acres each an Tract 3 of 23.8 acres, all in the N/2 of Section 25, Block 2.


Thanks for the pooling unit info.

Randy Eiland


Thanks for the info