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Permalink Reply by Skip Peel - Mineral Consultant 7 hours ago

Benjamin, there are a couple of different classifications of Louisiana drilling units.  If your notice letter came from a law firm, it is likely a "compulsory unit" as opposed to a "voluntary unit".  A unit is formed to assist with development of a particular geologic formation and unit boundary.  A compulsory unit "force pools" all mineral interests within that unit boundary.  That means all mineral rights owners and lessees (those who hold leases obtained from mineral owners) are forced to participate in the production of the unit.  If you are under an existing lease, you will be paid your proportional share of unit production based on the royalty and the terms in your lease.  Without additional information it is difficult to provide a further opinion.  You will receive a Division Order that provides the eight digit decimal fraction that will define your interest and what you are paid.  The math to determine the decimal is simple if you have the correct inputs.

Your acreage (as surveyed by the unit operator) divided by the total acres in the unit times your royalty fraction.  You should receive a copy of the unit survey to assist with that math.  Be forewarned that the survey will give the total acres in the tract but if you are not the owner of 100% you will have to know what portion of the whole you own.  The surveyed acres may also differ somewhat from what you think you own.  For example a tract described in a deed, donation or Judgment of Possession may read 40 acres while a modern survey may show it as 38.9 or 40.75 acres.

If you can provide more detail from the notice letter, we might be able to give a little more information.

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