Undivided Interest - Should Gross Acres and Net Acres be the same?

Oil and Gas Leasing Help
1

I'm looking over an "Order Of Payment" sent to us as part of a lease offer. I don't understand the "Net Acres" portion. If I have an undivided interest in 35 acres, why is my Net acres only about 14? What happened to the other 60%.

Thanks,

Gary

2

Hi Gary,

You would have to own a 100% interest in the acreage in order for the gross acres and the net acres to be equal. Given your calculations, it is likely that you only own an undivided 40% interest in the 35 acres (net 14 acres) and therefore persons own the remaining undivided 60% (net 21 acres).

Hope this helps.

3

I understand that when the description reads something like:

"An undivided 1/8 interest in the " (land description) that means you share the interest

but does:

"An undivided interest in the " (land description) with no fraction mean that you own 100% interest?

I have attached a snip of my description.

Sorry, I'm a little new at this.

Thanks,

Gary

1093-snip.JPG (11.1 KB)
4

Gary,

The deed doesn't necessarily have to have the fraction of the interest explicitly stated. The only way to know is to run the tract from inception.

http://www.berlinroyalties.com/oil-gas-minerals-royalties-educational-blog/2015/5/5/fractional-undivided-interest

P

5

Got it. Thanks for the information Jean and Parker.

G

6

No, just because you own an undivided interest in the surface or minerals of a tract of land does NOT mean that you own a 100% interest. If I convey to you a 10% interest in my land, that means an undivided 10% interest.