Replies to This Discussion

Permalink Reply by Plaser on December 6, 2010 at 13:27

Pamela, that is great! I have been waiting for this since they have been on our property for some time now! Thanks for the update.

Permalink Reply by PamelaC on December 6, 2010 at 17:08

Plaser,

It is nice to share gas with you! HaHa! I am not sure if we share the same math but this is what he said.

1/10 x 1/2 x 4/5 x 1/5 = .008

+ .008 + .0025 = .0105

1/10 x 1/2 x 1/5 x 1/4 = .0025

Permalink Reply by FXEF on December 7, 2010 at 9:07

I'm not sure what you are figuring, but below you will find the formula to figure division order decimal interest.

Division Order decimal interest calculation:

your acres -Tract size.
unit acres - The size of the unit in acres.
% royalty - Royalty as listed in your lease.

your acres / unit acres X % royalty = your decimal interest

Attached is a plat of the Crockett unit, with tract size and unit size.

Attachments:

• crockett_plat.jpg, 2.3 MB

Permalink Reply by PamelaC on December 7, 2010 at 9:23

FXEF,

I do not have anything but an acknowlegement, ratification papers and can not locate any current leases signed by surface owner. My grandma signed a lease in the 40's at 8.75% but then borrowed $ and I was told the family was taking care of it. I don't know for sure what happened after that. Was contacted by SM in Feb.

The formula above was given to me by Chris Hunter @ SM Energy when he told me DO's were going out this week.

Permalink Reply by PamelaC on December 13, 2010 at 7:00

Plaser,

 

Did you get the DO yet? I have not but hopefully within the next two days.

I was wondering if you have the production report for Nov

or have they not been published yet?

Permalink Reply by Plaser on December 13, 2010 at 10:44

Nothing yet.  Maybe Mr. Hunter told you that to appease you.  Was he surprised you gave him a call about it??

Permalink Reply by PamelaC on December 13, 2010 at 11:01

Plaser,

He wasn't surprised. I left a message and he called me back. Said they would be mailed Thursday or Friday. I just thought you might be closer than I am to their offices.

 

You probably have a lease. I am a NPRI in Tract 28 -- 42 acres ( 5 people for 1/2 and 3 for the other). Do you have any idea as to what my % might be?

Permalink Reply by Plaser on December 13, 2010 at 12:38

Yes, I have a lease.... what does NPRI stand for?  Also, I'm not sure what you mean by "5 people for 1/2 and 3 for the other".  Provide more detail please.

 

Thanks!

Permalink Reply by PamelaC on December 13, 2010 at 13:43

Plaser,

It is Tract 28

Non-Participating Royalty Interest (NPRI). There was 42 ac split between mom/uncle
mom had 5 kids, uncle had 3. We signed "ratification" papers that said $10 plus other valuable consideration?

Permalink Reply by FXEF on December 13, 2010 at 15:59

Pamela,

 

Your mom's kids have 4.2 net mineral acres each and your uncle's kids have 7 net mineral acres each. 

You might find this royalty calculator handy. Just plug in your values, and good luck.

 

 

Attachments:

• royalty_cal2.html, 22 KB

Permalink Reply by PamelaC on December 13, 2010 at 17:32

FXEX

 

What everyone keeps missing or maybe I don't understand what I signed is that I have no royalty interest percentage information because I can not find the leases. My paperwwork said that I "acknowledge, adopt and ratify" the lease. I have no lease nor can I find them. That is the only form I signed and it says $10 and other valuable considerations and that is all. Other than that I have no clue. I have all the info on production and such but not leases.

Permalink Reply by FXEF on December 14, 2010 at 3:43

Pamela,

 

It's kinda late for you to hear this, but you should never sign any document that you do not fully understand the wording.

 

Most likely you have ratified and made changes to your lease, but I don't know what changes were made. I suggest you ask SM Energy for a copy of your lease. It might be in your best interest to have an O&G attorney look at the lease and ratification papers. 

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