# Royalty /$$ how to figure correctly
**URL:** https://www.mineralrightsforum.com/t/royalty-how-to-figure-correctly/12764
**Category:** Payne County, OK
**Created:** [September 27, 2013, 5:25pm UTC](https://www.mineralrightsforum.com/t/royalty-how-to-figure-correctly/12764 "2013-09-27T17:25:02Z")
**Posts on this page:** 6
**Page:** 1
### Author:  [@Go\_Fast](https://www.mineralrightsforum.com/u/Go_Fast)
#### Post date: [September 27, 2013, 5:25pm UTC](https://www.mineralrightsforum.com/t/royalty-how-to-figure-correctly/12764/1 "2013-09-27T17:25:02Z")
Ok, I was reading my lease, since they _have_ drilled now. I was trying to figure out the best way to figure royalties, once we know what kind of production we have.
My understanding is: (net acres owned/640)_assuming spacing is 640_ x 3/16 (our lease %)x (bbl/day x oil price) x 30 = monthly amt?
My lease reads:
_ **In consideration of the premises the said Lessee covenants and agrees:** _
_**1. To pay Lessor 3/16ths of the proceeds received for all oil (including but not limited to condensate and distillate) and 3/16ths of the proceeds received for all gas of whatsoever nature or kind (with all of its constituents) sold from the lease premises, but in no event more than 3/16ths of the actual amount received by Lessee, payments to be made monthly..**_
Does this mean they can subtract processing & other costs? This makes me think that they can subtract whatever they want **'but in no event more than 3/16ths of the actual amount received by Lessee'.** Any ideas? It is a horizontal well, & there are no other producing wells in our unit.
A friend told us the big 'pots' already placed mean that the well is expected to make water. It hasn't been fracked yet but they are moving stuff into place.
Also, if they drill 4 wells from a location, how do you know which way they went first? Like, how do I know which one went under us?
Here's to hoping it makes more oil than water!
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### Author:  [@Go\_Fast](https://www.mineralrightsforum.com/u/Go_Fast)
#### Post date: [October 16, 2013, 8:26pm UTC](https://www.mineralrightsforum.com/t/royalty-how-to-figure-correctly/12764/2 "2013-10-16T20:26:05Z")
I found out which of the 4 went under us. There are numbers written on each pipe now. Now the waiting continues.
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### Author:  [@Bob\_Clary](https://www.mineralrightsforum.com/u/Bob_Clary)
#### Post date: [November 22, 2013, 5:23pm UTC](https://www.mineralrightsforum.com/t/royalty-how-to-figure-correctly/12764/3 "2013-11-22T17:23:56Z")
I figured that its about $9.00 a barrel to the royalty owner, not sure on that but probably close, did you find that to be different let me know..bc
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### Author:  [@chad\_elliott](https://www.mineralrightsforum.com/u/chad_elliott)
#### Post date: [November 24, 2013, 12:10pm UTC](https://www.mineralrightsforum.com/t/royalty-how-to-figure-correctly/12764/4 "2013-11-24T12:10:59Z")
Bob,
I'm curious as to what the $9.00/bbl is for. Water?
Thanks!
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### Author:  [@Bob\_Clary](https://www.mineralrightsforum.com/u/Bob_Clary)
#### Post date: [November 24, 2013, 5:51pm UTC](https://www.mineralrightsforum.com/t/royalty-how-to-figure-correctly/12764/5 "2013-11-24T17:51:36Z")
Oil/That's a guess, no one seems to know...Anyone on this site get oil royalties and what did you get?
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 1:14am UTC](https://www.mineralrightsforum.com/t/royalty-how-to-figure-correctly/12764/6 "2018-08-15T01:14:36Z")