GPI Factor? Grady County - Ratliff 1H -22X, Sec 22 & 27, 7N 5W

Oklahoma Mineral Rights Grady County, OK
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What does this term mean? My interest on the Division order is half of what it should be. I called them & they told me that I didn’t calculate my “GPI Factor” of 50.0981% because it is a multiunit horizontal well. So, the calculation is : net mineral acres divided by spacing unit times the royalty rate TIMES the GPI factor = the % of the gross value of production from the spacing unit. What the heck? Is this so? Any feedback appreciated. Tanya Humphries

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Tanya, great question! I'm sure there will be someone who can answer that, not me though. It will be interesting to me also to find out the meaning for those "just in case" FYI details for the future! Thanks for asking it!

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Hi Tanya, Since the well covers two sections, the payment from production is halved. (approximately). If it was 640 acre spacing it would pay revenue according to your figures. It appears to be 1280 acre spacing, therefore your interest is 1/2 of what it would be if the money was calculated on a 640 acre spaced unit.

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Thank you Marilyn & John. The Rep told me that it was on a

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uh oh, what a cliff hanger! The Rep told you it was on a ........... :-)

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a 640 spacing unit. So why it is still halved, I guess I’ll have to call her back & find out! I’ll keep you guys posted. Many thanks again. - Tanya

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Hi Tanya, I have interests in Section 22 07N 05W. Ratliff was drilled in Section 34 but it went North trough Section 27 (where you have your interests) to the NE corner of Section 22 (where I have mine)...The permit reads that the split of the total production will be 50.09 % for Section 27 and 49.91 % for Section 22.

They all published the July production, which was not bad at all. I can not find ant info about August, September, October etc... Can anybody help???? I have not received my D.O. so it was good news to find out that they have done something already for section 27...

Happy New Year For You ALL..

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Thank u Jose. This makes total sense to me now. Unfortunately, I myself have no information on the production of the Ratliff. Sorry I couldn’t be of more help, but i definitely will fill you in if I find out anything. - Tanya