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Permalink Reply by WV Mineral Owner on September 8, 2016 at 8:45am

Rick,

Typically these are nothing more than glorified Excel spreadsheets, based on the information you input.  

Just my opinion, but I have found a lot of the free Royalty Calculators that are offered, to be nothing more than a site to gain information on people, to learn what they are earning from parcels they own.  Do not be surprised if you suddenly receive offers to purchase your interest in a parcel, you have provided them with vital information to calculate an offer price. 

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Permalink Reply by G.H. on September 8, 2016 at 3:53pm

This is all pretty simple math.  Divide your parcel acreage by total unit acreage.  Multiply that by your royalty percentage.  This is NUMBER 1.  Then take total produced barrels of oil, or MCF of gas, whatever, multiply that by the current price of that commodity.  This is NUMBER 2.  Muliply NUMBER 1 by NUMBER 2.  Voila.  This is what your income should be without any deductions at the oil and gas prices you used.  Obviously those numbers vary.

Additionally, those calculators do not account for deductions.  The deductions can get pretty nasty.  In some cases you may as well type in your acreage and multiply by zero.  Some leases allow deductions some do not.  Some producers take deductions they shouldn't be taking.  All of them make sure to make it very difficult to understand what they are deducting for when they deduct.  Not all the operators are dishonest, but if you look around this site you will see which ones are more likely to be dishonest.

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Permalink Reply by KAS on September 9, 2016 at 12:12pm

I use this one.  It's give a ballpark numberif you are using the right prices and accounting for deductions.

http://geology.com/royalty/

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Permalink Reply by Rick S. on September 9, 2016 at 1:01pm

Thanks Guys, using the calculator I had found and the one from KAS then the formula that G.H.provided all the numbers are basically the same. 

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