Thanks for the reply, so if it is considered fixed, how would you calculate my decimal ownership?
I copied the below from another topic you answered:
A NPRI is absorbed by the royalty owner to the extent that it does not exceed their royalty. For example, if the NPRI was 20% and the lease provides for 18.75%, then the lease royalty owner receives nothing and the oil company’s net revenue interest is 80%.
SO, if the NPRI is .0325 and your royalty is .1875, then your share of production would be .1875-.0325= 15.50%.
My situation is 1/12 or 0.0833333 NPRI and a royalty rate of 1/8 or 0.125 so would this be correct for the fixed NPRI?
0.125 - .08333333 = .0416667 my part?
I just want to be sure, since it is a lot of difference in the NPRI part and my part …