I have a division order that calculates the decimal interest differently that I have seen in the past. Can some one explain it to me? This one says Mineral interest x Royalty Interest on your lease x # of acres owned by you that are contributed to unit Div. by #of acres in the unit = tract decimal.
First question what is the mineral interest and where do I find that number? (I have all the other info) ? x 18% x 62.9803 Div by 396.3664 =
What state are you in? The equations may vary just a bit depending upon state law.
Most likely the referenced mineral interest is your fractional share in the 62.9803 acres. Generally the minerals are divided among heirs and purchasers over the years. For example if A owned 100% and had 10 children who got equal share, then each child would own 1/10. If A owned 100% and sold 1/2 of the minerals at some time, then the 10 children would each get 1/10 of 1/2 = 1/20. Ask the oil company to confirm what is meant by Mineral Interest.
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