I received division orders today from Marathon on three new wells (Newby 0304 1-18SH; Newby 0304 2-18SH and Newby 0304 3-18SH). Previously existing wells on this land had 3 Marathon accounts - mine 50%; two living wills with remainder to sons - 25% each.
Royalties on these three Newby wells seem to have gone to only me. I’ve tried to check percentages from previous statements to see if they have just bundled everything to me or if they have neglected my sons.
The standard equation is:
net mineral acres/actual spacing acres x royalty x percentages of perforations in your section.
Since all the wells are in the same section, the last term is 1.0
Since the section is not exactly 640 acres, the actual spacing acres would be: 632.28. (Hopefully that number is on the Division Order in very tiny print.)
Do you know your net acres? For example, 10 acres would be:
10/632.28 x royalty= Division Order amount.
Does it match your check stubs for the Smith horizontal wells?
Your acres divided by total acres in unit. Example 10ac/640ac=.015625
If you want to figure net royalty multiply you fractional royalty times .015625
Example 3/16=.1875x.015625=.0029296. This applies to single section units, multi-units require multiplying by section allocation %
