# Unfamiliar pooling terminology
**URL:** https://www.mineralrightsforum.com/t/unfamiliar-pooling-terminology/45255
**Category:** Oil and Gas Leasing Help
**Created:** [April 29, 2019, 10:48pm UTC](https://www.mineralrightsforum.com/t/unfamiliar-pooling-terminology/45255 "2019-04-29T22:48:04Z")
**Posts on this page:** 4
**Page:** 1
### Author:  [@Robin\_J\_Amos](https://www.mineralrightsforum.com/u/Robin_J_Amos)
#### Post date: [April 29, 2019, 10:48pm UTC](https://www.mineralrightsforum.com/t/unfamiliar-pooling-terminology/45255/1 "2019-04-29T22:48:04Z")
OK. Pooling Order #695219 Dewey 27-18N-14W Options: $2500 1/8; $2000 3/16; $1500 1/5. I normally take the low bonus and higher royalty. I’ve never seen these wordings before. Would someone please explain the following for the 1/5th royalty option:
1. Para. 7.4 “$1500 per acre plus an overriding royalty OR excess royalty of 7.5% x 8/8” Exactly what does that last part mean?
2. Para. 7.4 added at the end–“in the event any owner’s interest is subject to a royalty, overriding royalty, or other burden on production in excess of the normal 1/8 royalty… then such… shall be charged against the 7.5% x 8/8… and the same shall be reduced by the amount of any such excess.” Thanks in advance
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### Author:  [@tim\_dowd](https://www.mineralrightsforum.com/u/tim_dowd)
#### Post date: [April 30, 2019, 12:52am UTC](https://www.mineralrightsforum.com/t/unfamiliar-pooling-terminology/45255/2 "2019-04-30T00:52:59Z")
Under the spacing statute, every owner is entitled to a 1/8 royalty, which is 12.5%. So the excess royalty is 7.5% in addition to the 12.5%, or 20%, which is 1/5.
The second paragraph is primarily directed at leasehold owners. Suppose a lessee takes a lease at 3/16, which is 18.75%. “In the event any owner’s interest is subject to a royalty, overriding royalty, or other burden on production in excess of the normal 1/8 royalty…then such…shall be charged against the 7.5% x 8/8…and the same shall be reduced by the amount of any such excess” means that lessee can’t receive 7.5% in addition to his/her 18.75%. It is deducted from that part in excess of 12.5% (or 1/8). I.e., you/ anybody can’t receive more than a 20% royalty or can’t add their overriding royalty interest on top of a lessor’s royalty to come to more than 20%.
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### Author:  [@Robin\_J\_Amos](https://www.mineralrightsforum.com/u/Robin_J_Amos)
#### Post date: [April 30, 2019, 1:03am UTC](https://www.mineralrightsforum.com/t/unfamiliar-pooling-terminology/45255/3 "2019-04-30T01:03:41Z")
Thanks, Tim, for breaking this down for me. I can now reply with my royalty option.
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 7:26pm UTC](https://www.mineralrightsforum.com/t/unfamiliar-pooling-terminology/45255/4 "2025-01-11T19:26:50Z")