Scenario: A person(s) hold rights to 50 mineral acres in a 100 acre tract of land. How are those 50 mineral acres delineated? In other words, where are those 50 mineral acres if those acres are not surface acres? What’s the breakdown??
I’m new to this forum. We just realized that there are potential royalty payments that we were not aware of until just recently. We understand that a lot of folks are in this same situation. It turns out that the Oklahoma Corporation Commission and the treasury departments are sitting on what amount to hundreds of millions of dollars. I on a learning curve here so please bear with me.
You own 50 of the 100 but unless it’s a specific 50 carved front eh 100, you own an interest in all 100 acres. In your example you would own 50/100ths or 50%
Thanks for your quick response. This is a good thing!
So, let’s say that the in the example that the 100 acres is a square tract of land. Let’s then suppose that we make four 25 acre quadrants. Let’s further suppose that minerals (oil or gas, for example) are found in the SW quadrant and the well is producing. If I have a 50% interest in all 100 acres, how are my interests, or royalties doled out?
Doesn’t it matter where they physically find minerals? Or, would I reap 50% of what is extracted from the surface land no matter where minerals are found (assuming that the 50 acres are not carved out)?
If you own an ‘undivided’ 50 net acres out of a gross 100 acres then it doesn’t matter where on the 100 acres Oul/gas is found
You share proportionally in all the acreage.
If you own 50 acres in a specific quadrant then it would matter where the oil/gas is found and you would only be entitled to production if the well crossed you acreage.
Units/pooling is the same. If you own acreage in a section and the unit size is 640 then you will be entitled to a proportion of the production from the entire unit regardless of whether the well was drilling through your acreage or not…just as long as you were included in the unit and there’s a well in the unit.
This is due to the fact that a well drains an area that extends beyond the well bore.
And by minerals I’m referring to oil and gas not hardrock or soft minerals
Dan:
You will find that this site is very useful and you generally get very good input from the members. When leasing or dealing with other issues an attorney can be worth his or her weight.
I have a feeling I am going to get a really good education being involved with this forum. I do have an attorney. And, part of this quest is for me to get up to speed on things and then see what would would be most useful to their office so they can get up to speed. Since I’m basically new to this stuff, they are too.
