landowner

Decimal Interest

A general question-----What is considered a good decimal interest and what would be a very low decimal interest. It seems like a good lease with great royalty but by time all the additions and division -- the decimal interest is much lower than the royalty interest. Just curious about it all and what to look forward to. The division orders have been signed and returned and now the wait for the checks to come in be it small or large!! haha

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Permalink Reply by DTrucks on November 23, 2014 at 11:07

Hi Ettie, I've been reading this forum for several months now, and 1/4 (25%) seems to be the high average and 12% (1/8th) seems a bare minimum. I'm also reading not to be hard-headed about it because you just can't win (forced pooling).  Also, oil prices down by 25% lately, so they're trying to cut costs.  

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