If the source deed you referenced uses the same language you have in your post, then you have a 1/64 NPRI (Non Participating Royalty Interest), rather than a mineral interest, in and to 320 gross acres. That royalty percentage could decrease, depending on the language used in the Deed and the ownership percentage that the Grantor had at the time of the conveyance. If he did not own 100% of the Minerals/Royalty in the conveyed tracts, then your royalty is proportionate to what he did actually own. NPRI calculations can be complicated. The main thing you should know is that as an NPRI owner, you are not entitled to any bonus or delay rental, and do not have the power to execute a lease. You are entitled to your royalty share, which comes out of the Mineral owners negotiated lease royalty, and you also have the power to grant pooling, should your acreage be included in a Pooled Unit.
On the pooling and HBP. The unit looks very arbritrary to me. The 10 year old lease I inherited is strongly for the operator. There is not an obvious pugh clause. It has a pooling and unitization clause that I’ll have to look at closer. I have heard a lot of different opinions on this clause. The release comes when economic quantities stop being produced. I would feel better if operator would have attempted another well but they just drilled one and stopped, then spread the unit over three different sections favoring the section that the platform was in. I can’t see it having anything to do where the gas is coming from under the ground.
Or 320 yards shy of two miles. Just go walk two miles and think of a drill bit following you and then having frac stages every 250’ of so. Imposing thought and not on the radar of possible ten years or so back.
DCole – little experience I have… but this past summer I heard ‘at least a $!,000/acre most anywhere in Reeves County if it has road frontage’. I feel sure some of the irrigatable flat lands in the central and eastern part of the county must be more. Later – Buzz
Linton - you might try what our family does - to have one member of the family negotiate for the entire family, siblings and others. this gives you much more bargaining power. As for us, they leave it entirely up to me, of course before I sign off, I check all with them. So far they have been satisfied by what I have done. Last Aug. I got $4k for the acres on Dad’s old farm - Sec. 59. Blk. 4 H&GN, and a guarantee to drill within 2 years.
The Red willow permit also reminds me that they also purchased an easement for 2 pipelines down (North /South) the left edge of A4061, Blk C-18, Sec 4. They have not started construction yet, as far as I know.
Dear Friends, I am not seeing the price slide affect deals in the pipeline very much, and have not seen any big deterioration in bonuses or royalty. Companies are pushing back more on lease terms, however, and new activity is definitely slowing on leasing. Pipelines and other infrastructure deals are steady, however. Just my two cents.