Is there a correct (or incorrect) way to split up your rights within a section, either for heirs or for buyers in Oklahoma?
For instance, if you own 40 nma in Section xx-xS-xW and you bequeath or sell 20 nma to another person does it make a difference which 20 nma?
Thanks in advance and I hope that makes sense and also hope that this is useful information for others!
The answer to your question depends on the 40 acres being divided vs undivided.
Do you mean that, depending on the location of a particular section, part of it could have more production potential than others?
I guess another way to ask my original question is whether or not oil and gas companies have to lease an entire section before drilling there or if they only need to lease from a portion of section owners based on the drilling location
In Texas, I am not sure in other states. it is usually by section as All, or 1/4’s of a section NW/4, SW/4, NE/4, SE/4 and so on… Then one can determine if part of a quarter in acreage is split as in physical location or in quantity of the whole definition. How this affects ones royalties is based on those factors. If one sells or gives an amount of percentage of the whole, then the entire area of that parcel is a benefit to both parties reduced by what ever the terms of agreement are in percentage. If it is by specified acreage location within those constraints, then It may allow one that has a lateral line or well running through the specified acreage a royalty and the other none if an allocated well. Look at the example and see that 40acres were assigned in the SE4 area. That does not pay any royalties to the green area other than what is above the 40acres. the 40 acres is getting its own royalties at what ever percentage that it is.
mk
Many thanks
That is really helpful
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