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Permalink Reply by rmc on November 13, 2015 at 11:16pm

This is what I saw on this site once before.
You're total acreage in the unit divided by the total unit acreage times you're royalty percentage equals you're decimal interest in that unit.

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Permalink Reply by rmc on November 14, 2015 at 1:09am

Hopefully someone can chime in and tell us if that's correct or not.

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Permalink Reply by Joseph-Ohio on November 14, 2015 at 1:29am

http://gomarcellusshale.com/forum/topics/question-on-the-decimal-in...

The above link takes you to a detailed discussion about 'decimal interest' and including how it relates to 'Division Orders'.

It appears to me that your definition is in step with that conversation.

However, the term 'decimal interest', standing alone, to me, can be rather ambiguous.

For instance, your acreage, divided by total acreage, in any group / pool of acreage renders a fraction, which could also be called a 'decimal interest' in a broader sense of the term (confined to only acreage).

Words taken out of exact context have always been troubling to me.

PS: Personally, I've never even seen any sort of 'Division Order' document to take a look at / study so I'm at a disadvantage here (however, I've kind of grown accustomed to it) !

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Permalink Reply by David on November 15, 2015 at 6:04am

Ask the company/companies who owe you royalties to provide their calculations. Then seek a good lawyer or if your bank has an oil and gas specialist ask them to verify the calculations provided. I am involved in and have sold rights several of our decimal interest calculation were wrong and in one case it took 9 months to get it corrected. Good Luck and be persistent!

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Permalink Reply by William Dotson on November 14, 2015 at 2:35am

Good question. I can see from what you have posted so far that you are going to come up with a different number.

The first thing you need is the final Declaration of Pooling for the unit in question. This document is filed/recorded with the county assessor's office and the well operator can provide a copy.

All the one's I've seen use acreage to one decimal place for both the mineral tract acreage that is included in the unit and the unit acreage.

Next you will need the fractional interest you possess of the mineral tract.

And finally the royalty percentage to which you are entitled.

Mineral interest * Royalty Interest = First Number to 8 decimal places.

Tract acreage included in the Unit / Unit acreage = Second Number to 8 decimal places.

Multiply First Number  &  Second Number  = Decimal Interest to 8 decimal places.

Keep in mind that all of the mineral tract you have an interest in may not be in the Unit. That is why the final Declaration of Pooling is so important.

Hope this helps.

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Permalink Reply by Joseph-Ohio on November 14, 2015 at 3:15am

By 'mineral interest' and / or 'fractional interest' one possesses 'in the mineral tract'; do you mean the 'share' of the land's minerals possessed ? ? That is : the 'share' considering owning only a 'fraction' of the minerals by virtue of having 'sold off' a portion of what one owned or by virtue of an 'inheritance split' or some such ? ?

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Permalink Reply by William Dotson on November 14, 2015 at 3:24am

Yes. Like my interest in most of the mineral rights I have is 1/12. This can come about by a previous owner retaining a portion and/or heir-ship interests. And it's 1/1, if you are fortunate enough to own all the rights of a particular tract. 

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Permalink Reply by 0ym9x5ag7ury2 on November 14, 2015 at 8:38am

  15.997 / 360.16 x o.16 = 0.0071066

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Permalink Reply by William Dotson on November 14, 2015 at 9:59am

Did it come out right for you this time?

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Permalink Reply by Joseph-Ohio on November 14, 2015 at 10:08am

Your Calc. reads to me like as follows :

Your acres are (15.997 A.)

Unit acres are (360.16 A.)

Your Royalty % is (16%)

Your 'Decimal Interest' is 0.0071066

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