Hi all,
My brother and I inherited these mineral rights from our mother and aunts. We have various different ones around Tyler county Texas. We have had them as long as I can remember (they began before we were born) and we've not paid much attention to them I admit. Sometimes we get a good amount for a new lease, recently the royalty checks have been very small. Interest does seem to have picked up in the area though so we are hopeful. My philosophy has always been, no matter how small the check, it's money I didn't have before.
Anyway, enough rambling :). My question is, how do you know what a net mineral acre is? I just got a new lease for a renewal that says there are 364 gross acres, and at the end of the description it says (4.04 "net" acres). Are the "net" acres the same as net "mineral" acres? From what I've read it almost seems as if the net mineral acres are about half what actual acreage is. We of course are getting paid on the "net mineral acre" so I'm just trying to figure out how much the check is going to be.
The figure my brother came up with is way more then mine so I hope mine is wrong LOL
thanks,
Simply, if you among others each own a small part of each of the 364 acres, they are saying if all the bits attributed to you personally were gathered into one spot, that spot would be 4.04 net mineral acres acres. The division order may be a shock to you also. If you are leased at 25% royalty, you will receive payment for what would come from 1.01 acres and there will probably be some costs and taxes taken out of that before you see the check or deposit. It is true that any money you get is more than you had before and you could be getting checks for a long time. I hope this helps and you get a monster of a well.
OK cool, so we will be getting 4 times the amount they are offering per net mineral acre. That is what I thought, but as I said, it is money I didn't have yesterday and it's not because I'm doing anything but signing a paper so I can't complain about the amount.
thanks again
I have mineral rights in Moffat County Colorado. When I look at my tax records it says 1/15 rights on a total of 280 acres. That equals 18.66 mineral acres. [280 divided by 15 = 18.66]. I've confirmed the way to figure this with Moffat County. I dont know if other states figure it the same way.
Kathy
I wondered about that. Our lease says something about 1/8th, I believe it's in relation to the royalty checks should we actually have something to get a percentage. I wasn't sure it that had anything to do with how the net mineral acres were figured. I don't have the lease here with me at the moment, and I can't remember how many others there are on that tract (people who share in the pie so to speak).
So, we could be getting what I figured is correct) or what my brother figured. :) I guess at this point it's a waiting game until the check comes back.
Which brings ups another question - how is the royalty figured? That 1/15 of say a 20% royalty could really mean 1.33% [which is a fifteenth of the 20%]… Hummmm.
they will show you that one the lease… it says how many net acres you will get and how much an acre along with how many barrels you will be getting…