My family owns mineral rights in Burke County which we have leased and they are actively drilling on one of the two sections. We have an 18.5% royalty per our lease. The two sections were divided to seven siblings, two of which had only children (I am one of them). Am I understanding correctly then that whatever the royalty amount is that we are going to be paid is determined (after all the things that have to come out of it, pooling, etc., etc.) and let’s say the family’s part of the profit for the month after all those deductions, then I would get 1/7 of whatever the total profit is for the entire family, since I own 1/7 of the mineral rights in each section…is that correct?
Lets say your family owned the NE or 160 acres in each section to make it easy for you to plug in your net acrege. If grandpa owned 100% interest, then the 7 kids would own 1/7 each in the 160 acres. Not sure if you have siblings, if you dont and you got 100% interest from dad/mom, then youd own their 1/7th interest. The equation below would be how to calculate it for 1 section in a 1280 acre unit/well. If both sections comprise 100% of the unit, then multiply by 2.
1.0 (if your interest is 100% covered in the unit, youll have to look at the spacings/poolings to determine this) x 1/7 (your interest) x 0.185 (lease royalty) x 160 (net acres owned) /1280 (the unit size)= 0.0033% nri in the unit paid upon
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