Earlier I asked a question (1st time) and no one responded. I am going to try a different question. I have more information this time.
I must preface that my grandfather purchased minerals with a group. He owned a 1/7 interest in the follow 'MINERAL & ROYALTY TRANSFER (To Undivided Interest)" deeds.
1. The group purchase an undivided interest in 20 acres out of 52 acre tract. The property description on deed is long, with lots of things that are similar to: "thence go 52 degrees & 30 minutes West 188 feet". However the closing of the description says: "partly in NE/4 of NE/4 & SW/4 NE/4 & SE/4 of NE/4 of Section 17".
2. The group purchase and undivided interest in 37.5 acres out of a 105.5 acre tract. This description is impossible for me and covers lots of Sections. However, parts were leased at different times & I have been able to determine the acres in each of the numerous pieces. The piece that is important reads: "All of the N/2 of N/2 of NE/4 on the NW side" of a railroad & less part of a village (I shortened the less part.) in Section 17. When this part of the deed was leased individually, the acres were 10.6.
The lease is old & it is for 1/8 %
The Division Order covers the E/2 of NE/4 of Sec 17. No exact acres are listed on the Division Order, so I am assuming 80 acres.
I have been trying to calculate the interest for the group and then divide by 7. Here are my calculations: 1/8 (lease) times 30.6/80 (acres own/acres tract) times 1 (undivided interest?) = .047813 divided by 7 (# in group). Answer is .006830. The problem is the Division Order says .006116. Have I done something wrong or could I still be missing information?
There is no way to determine exactly from the information you provided. However this sticks out as one possible source of the discrepancy. The SW/4 of the NE/4 is not in the spacing unit of well that covers the E/2 of the NE/4.
"partly in NE/4 of NE/4 & SW/4 NE/4 & SE/4 of NE/4 of Section 17"
Patricia,
Go back to the Division Order and the name of the well. Check the completion permit acres. See if you can find a number of acres in the unit. I'll guess that it is 89.34 acres. If the unit is "partly in "17, then some of the land may be "partly out" of 17 and may not be in the unit. If the unit is exactly 80 acres as you state, your group may only have 27.40 net acres at 1/8 lease in the 80 acre unit. Or 1/8 is wrong, or the Division Order is wrong and your are right. Most likely you are assuming you have more acres in the E/2NE/4 than you may own as a group.
I so appreciate you taking the time to look at my question.
I recognize you are correct, but thought by only using the # of acres owned by the group (30.6/80) that I was dropping out those acres. Should I rethink my formula? Often a lease/division order only includes a portion of a deed or we only own a portion of the acres involved in a division order.
I am going to continue to look for more information. My records are disorganized, old and incomplete. If I could just get one Division Order calculation to work I would know that I understand the calculation. I have ALL the deeds, but am often missing the old leases. A lot of the old stuff is no longer producing, so I have dropped off my radar.
Thanks again!
Patricia Drew
Rick Howell said:
There is no way to determine exactly from the information you provided. However this sticks out as one possible source of the discrepancy. The SW/4 of the NE/4 is not in the spacing unit of well that covers the E/2 of the NE/4.
"partly in NE/4 of NE/4 & SW/4 NE/4 & SE/4 of NE/4 of Section 17"
I so hope you are correct! I am not in a position to pull information, but at first opportunity will do so and let you know if you were correct. The well is in Mississippi and they have a website with plot drawings. I'll start there.
My family is attempting to group their mineral interest into some legal entity. More work than I ever imagined it would be! I think this is the first of MANY questions.
Really appreciate you time.
Patricia Drew