Replies to This Discussion

Permalink Reply by jffree1 on February 20, 2011 at 7:42

Perry, you might get a response if you tell us which survey you are interested in.  If you have looked at the GIS map, you probably realize that most of the activity has been near the north boundary of the county. 

It looks like the Sabine County members are all on spring break.

Permalink Reply by Perry DuBose on February 20, 2011 at 14:07

What is a survey? I know very little. My mother owns the land. It's very close to the town of Milam. How do you know what the survey is? Is that the survey of her property? Oil company survey? County survey? RRC survey?  trying to educate myself.

Permalink Reply by jffree1 on February 20, 2011 at 14:22

Perry, a survey, in this instance, refers to the original land grant "survey" and abstract number where your mother's minerals are located.  It is a part of the legal description, which will also give the size of the tract and the metes and bounds (shape) of the tract. 

If she has a lease there will be a description of the tract somewhere in that lease.  The lease description probably doesn't include the metes and bounds as a deed would.  Instead, it usually will refer to a deed record (Volume/page) where that information can be found (hopefully).  But a lease description will tell which survey and abstract the tract is found in.

Permalink Reply by Perry DuBose on February 20, 2011 at 14:36

Ok Thanks, Next time I"m in Milam I'll look at it. If she has about fifty acres and they decided to drill and found gas or oil how does the law work on how much of the proceeds from the well go to her. What I mean is does she have to share with a neighbor if the rig is on her land since she only has 50 acres? The 50 acres is pretty much a rectangular shape on the map. pardon my ignorance. LOL

Permalink Reply by jffree1 on February 20, 2011 at 16:22

Her acreage would be pooled with other tracts to form a pooled unit.  Her 50 acres would share in well production as a % of the total number of acres in the unit.  If the unit was 640 acres, 50 acres would be 7.8125% (0.078125) of the total (50/640) X the royalty % on her lease.  The number of acres included in a unit may vary over a wide range but the rule is 640 acres + 10% (704 acres), plus there is additional acreage allowed for long horizontal wells.

If you go to the main page and click on "View all" at the bottom of the discussions, you can do a search for "royalty calculator".  There are dozens of discussions in the archives that pertain to figuring royalty income.

 

Permalink Reply by Perry DuBose on February 21, 2011 at 3:46

Thanks Keith.

Permalink Reply by Sarah on February 24, 2011 at 19:22

You mean, thanks Julie. ;)