question on the decimal interest figure for landowner in a unit for natural gas

As a landowner with 28.6 acres in a 631.494 total acres in the unit how to arrive at a decimal interest we have 21% royal on lease. our percentage of the unit is 4.528942%. Thanks

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0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on August 16, 2013 at 5:22pm

~.95% (I rounded off a few decimals)

Permalink Reply by Tim Tarr on August 17, 2013 at 3:45am

28.6 (your Acres in unit) / 631.494 (Total acres in unit) = .045289425 (4.5...% of unit) X 0.21 (21% royalties) = .009510792 or 0.95107% (your share of production) not sure how many decimals each company goes but probably 4. I also bet they "truncate" and don't round.

Permalink Reply by Robin Hood on August 18, 2013 at 1:11am

If they sell a million dollars of product a month you get $9510. At a $100 a barrel, that would be 333.33 barrels a day or approx 5 times as much gas btu equivalent required to meet the monthly million dollars in sales.

Permalink Reply by Tim Tarr on August 18, 2013 at 4:24am

Don't forget any deductions; If allowed.

Permalink Reply by Sandra Jankowski on August 18, 2013 at 5:38am

According to the pooling and unitization report for this well the total acres in the unit is 631.494 but when i received the division order to be signed and sent back to the gas co. the property description is 494.348 acres more or less created by the declation of pooling & unitization. Then it shows 0.00951078 Royality Interest for us.. Before I sign this division order i want to be sure they are correct on this figure. This is cabot interest in this unit. there is 171.197 acres that is two other gas companies which make up the 631.494 total acres in this unit. Thanks for the help.

Permalink Reply by Sandra Jankowski on August 18, 2013 at 6:18pm

checked out the 171.197 acres and they have been bought by cabot so the 631.494 acres is the right total so why would we be in 494.348 acres more or less as the division order reads.Will speak to cabot tomorrow to get this information before signing this. They say our royalty interest is

0.00951078  seens right for the 631.494 acres just need them to change the acres that is marked wrong on the division order. Thanks

Permalink Reply by thelma cathleen hays on August 19, 2013 at 12:43am
There is no reason for you to send division order back to them. That could be a big mistake because they could put wording in there that will change your percentage

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