I’m trying to figure this out. It seems that the property name and decimal keeps changing?
Would need a section, township and range to answer that.
Section 24 Township 16N Range 6W
Lil Sebastian 1606 1-24MH, 2- 24MH, 3-24MH, 5-24MH and 7-24MH are all horizontal wells that were recently drilled or about to be finished. They are all in one section, so the decimal amount should not change. The equation is: net acres/spacing acres x royalty x % perforations in your section. In this case, the perforations are all in one section, so the last term should be 1.0.
Are you getting division orders with different numbers?
Yes, I first inherited the mineral rights about 20 years ago. My decimal with Conoco was 0.0117185. I received small checks from them about every 3 of 4 months for several years. Then, last year, around September, I received a much larger check than expected. I was told that it was because Alta Mesa started horizontal drilling and my decimal was now 0.00292969. Last week, I received Division Order form Plains Marketing and they say my decimal is now 0.00040949 Is this correct???
You may have an old lease that has different royalties for oil versus gas. I have some of those. How many acres do you have? The original decimal was based upon the acreage in the original spacing for a vertical well. The new wells are spaced at 640 acres. Does your acreage work out with the equation that I listed above?
I don’t know what the acreage is. where do I find that information?
Contact the division order analyst and ask them for the paragraph of the title opinion that pertains to your acreage. Ask them for the net acres that they are carrying for you. Ask them why the change in the decimal amount between the last two checks. Contact both Alta Mesa and Plains.