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Permalink Reply by Zoner on June 16, 2015 at 5:13am

(decimal interest) divided by (royalty percentage) times (unit acreage) = your acreage in unit. The 1/6 is irrelevant because this will give you your acreage ownership. 

royalty percentage needs to be in decimal. 1/8% = .125     20% = .2  ect.

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Permalink Reply by Jim White on June 16, 2015 at 7:58am

Thanks Zoner! I wouldn't have figured that out in a month of Sundays. Wow....1.5 net acres! Does anyone know the location of a Ferrari dealership in the area?!

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Permalink Reply by David on June 17, 2015 at 12:48am

Not as simple as described above

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Permalink Reply by Nancy Mosley on June 17, 2015 at 2:17am

Did your division order say how much acreage of your tract is in the unit (gross for the tract, not your 1/6 interest)? Sounds like you are trying to find that, but the company should tell you that. In my limited experience with division orders, there is a phone number to call with questions, and that would be a great question. Then calculate for yourself. There is also the question of if the company sending the division order is the only one that will be paying you on this well, or if there will be other companies who probably will send their own division order, and just how each company states things. We have a unit with 50% interest for each of two companies. One's division order reflected the entire unit size (and our tract acreage in it) and the other only showed their 50% of that figure. Get all the facts you can, then see if you agree with their calculations. If not, ask some more questions.

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