Hello: i just joined this discussion group and want to learn more about royalties paid to those like myself that own surface and mineral rights. I inherited property in woodward co. 15 years ago from my grandmother. I receive royalty checks for gas from Chesapeake and also Linn that reflect my 1/3 interest in the property. The last well was drilled about ten years ago. Some wells are paid at a payment decimal of .00258575 an example being one well for one month: chesapeake receives $7549.00 and my 1/3 interest receives$18.47. Other wells pay at a payment decimal of .00781255 an example being one well one month: chesapeake receiving $6039.00 and my 1/3 interest $44.66. Just interested in what others receiving royalty checks are getting from their companies and if what i'm getting is somewhat of an industry standard for surface and mineral owners. Thank you, michael
Michael,
Surface rights are not part of the mineral rights equation. Take the number of acres you own and divide by the number of acres in the spacing unit. Let's say you have 5 mineral acres and the spacing unit is 80 acres, 5/80 is .0625. Now determine what the lease royalties are. let's say 1/8 or .125. This means you should get .0625 x .125 or .007813 (or about what you stated.)
thank you for clarifying that for me Daniel. And doing the math makes sense as far as what i'm getting percentage wise. Michael
Daniel A. Thompson said:
Michael,
Surface rights are not part of the mineral rights equation. Take the number of acres you own and divide by the number of acres in the spacing unit. Let's say you have 5 mineral acres and the spacing unit is 80 acres, 5/80 is .0625. Now determine what the lease royalties are. let's say 1/8 or .125. This means you should get .0625 x .125 or .007813 (or about what you stated.)