Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on September 19, 2022 at 8:00

Chances are the well you refer to is a unitized well.  A unit boundary encompasses multiple tracts and all or portions of multiple surveys.  All mineral owners within that boundary share proportionally in the production of all unit wells based on the net mineral acres and their royalty fraction.  Your mineral acres owned divided by the acres in the unit times your royalty fraction will equal you eight digit fractional interest.  In cases of Allocation wells that produce from two or more units, your eight digit interest would be multiplied by the percentage of the horizontal perforated lateral that lies in your unit.  So if half of the well was in your unit, your eight digit interest decimal would be multiplied by .50.  The homestead acres are irrelevant.

• ▶ Reply

Permalink Reply by ninecats1 on September 19, 2022 at 14:01

Thank you so much! Exactly the information I was needing to make sense of it all.

• ▶ Reply