# Terminology Question

**URL:** https://www.mineralrightsforum.com/t/terminology-question/6066
**Category:** Eagle Ford Shale
**Created:** [October 23, 2015, 4:17pm UTC](https://www.mineralrightsforum.com/t/terminology-question/6066 "2015-10-23T16:17:38Z")
**Posts on this page:** 11
**Page:** 1

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### Author: ![Melissa\_Nelson](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/m/4af34b/32.png) [@Melissa\_Nelson](https://www.mineralrightsforum.com/u/Melissa_Nelson)
#### Post date: [October 23, 2015, 4:17pm UTC](https://www.mineralrightsforum.com/t/terminology-question/6066/1 "2015-10-23T16:17:38Z")

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What does the interest type UMI stand for?

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### Author: ![Eric\_C\_Camp](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/eric_c_camp/32/2608_2.png) [@Eric\_C\_Camp](https://www.mineralrightsforum.com/u/Eric_C_Camp)
#### Post date: [October 23, 2015, 4:23pm UTC](https://www.mineralrightsforum.com/t/terminology-question/6066/2 "2015-10-23T16:23:24Z")

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Hi Melissa - UMI stands for Unleased Mineral Interest.

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### Author: ![Charles\_Emery\_Tooke\_III](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/charles_emery_tooke_iii/32/16731_2.png) [@Charles\_Emery\_Tooke\_III](https://www.mineralrightsforum.com/u/Charles_Emery_Tooke_III)
#### Post date: [October 23, 2015, 4:24pm UTC](https://www.mineralrightsforum.com/t/terminology-question/6066/3 "2015-10-23T16:24:25Z")

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Hi, Melissa -

You didn’t go into what context you ran across “UMI”, but it could be Undivided Mineral Interest.

Hope this helps -

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### Author: ![Erin\_Moses](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/e/9de0a6/32.png) [@Erin\_Moses](https://www.mineralrightsforum.com/u/Erin_Moses)
#### Post date: [October 23, 2015, 4:33pm UTC](https://www.mineralrightsforum.com/t/terminology-question/6066/4 "2015-10-23T16:33:58Z")

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Undivided Mineral Interest - the percentage of minerals owned by the person

and RI is the Royalty Interest - the royalty interest owned (mineral interest x the royalty provided for in the lease)

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### Author: ![Eric\_C\_Camp](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/eric_c_camp/32/2608_2.png) [@Eric\_C\_Camp](https://www.mineralrightsforum.com/u/Eric_C_Camp)
#### Post date: [October 23, 2015, 4:39pm UTC](https://www.mineralrightsforum.com/t/terminology-question/6066/5 "2015-10-23T16:39:44Z")

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Gotcha. Then in that context, it would stand for Undivided Mineral Interest.

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### Author: ![Charles\_Emery\_Tooke\_III](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/charles_emery_tooke_iii/32/16731_2.png) [@Charles\_Emery\_Tooke\_III](https://www.mineralrightsforum.com/u/Charles_Emery_Tooke_III)
#### Post date: [October 23, 2015, 4:57pm UTC](https://www.mineralrightsforum.com/t/terminology-question/6066/6 "2015-10-23T16:57:09Z")

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Your interest is a fraction of the minerals in a tract of land. If you own 10% of the minerals in a 40 acre tract of land, you own 4 acres of minerals in the 40 acre tract, or a 0.1 decimal interest.

It is Undivided, because you own part of the minerals in the entire 40 acre tract. If it were divided, you would own 100% of the minerals in a 4 acre tract.

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### Author: ![Charles\_Emery\_Tooke\_III](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/charles_emery_tooke_iii/32/16731_2.png) [@Charles\_Emery\_Tooke\_III](https://www.mineralrightsforum.com/u/Charles_Emery_Tooke_III)
#### Post date: [October 23, 2015, 4:59pm UTC](https://www.mineralrightsforum.com/t/terminology-question/6066/7 "2015-10-23T16:59:00Z")

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My pleasure.

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### Author: ![Eric\_C\_Camp](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/eric_c_camp/32/2608_2.png) [@Eric\_C\_Camp](https://www.mineralrightsforum.com/u/Eric_C_Camp)
#### Post date: [October 23, 2015, 5:06pm UTC](https://www.mineralrightsforum.com/t/terminology-question/6066/8 "2015-10-23T17:06:44Z")

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Sure. You own an undivided mineral interest when you own part, but not all, of the minerals under a tract.

For example, let’s say your mother has four children and she owned all of the mineral in a 100 acre tract and she left them all to her children. Each of her children would individually own 1/4 (25%) of the minerals in the 100 acre tract. They would each individually own a 1/4 (25%) undivided mineral interest in the 100 acre tract. Such an interest can also be described as “25 net mineral acres” (being 1/4 of 100 acres) and as a 0.25 undivided mineral interest in the 100 acre tract.

If one of the children was to sign an Oil & Gas Lease with a 1/5 royalty, then that sibling would be entitled to 1/20 of the total production from the 100 acre tract (being a 1/5 royalty on the 1/4 undivided mineral interest).

On a Division Order it is important to show the size of the undivided mineral interest because it is part of the calculation of how much a particular person gets from the wells production. Let’s assume the 100 acre tract was part of a 400 acre unit or pool. The sibling that signed the Oil & Gas Lease would be entitled to 1/80 of the production from the pool (100 acres divided by 400 acres times the 1/4 undivided mineral interest times the 1/5 royalty).

Make sense?

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### Author: ![Buddy\_Cotten](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/buddy_cotten/32/5079_2.png) [@Buddy\_Cotten](https://www.mineralrightsforum.com/u/Buddy_Cotten)
#### Post date: [October 24, 2015, 4:46am UTC](https://www.mineralrightsforum.com/t/terminology-question/6066/9 "2015-10-24T04:46:51Z")

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I have to admit that I have never seen that set of initials before. I would contact the operator to ask them exactly what they meant.

It is likely an undivided mineral interest, but why have it on a division order? That makes no sense, since you are paid on your share of production, not your mineral interest in a unit.

Best,

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### Author: ![Buddy\_Cotten](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/buddy_cotten/32/5079_2.png) [@Buddy\_Cotten](https://www.mineralrightsforum.com/u/Buddy_Cotten)
#### Post date: [October 24, 2015, 5:27am UTC](https://www.mineralrightsforum.com/t/terminology-question/6066/10 "2015-10-24T05:27:42Z")

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Upon further reflection, I would make sure that the division order is on the state form and all references to the “UMI” are deleted.

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 14, 2018, 11:28pm UTC](https://www.mineralrightsforum.com/t/terminology-question/6066/11 "2018-08-14T23:28:28Z")

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