How to verify accuracy of decimal interest

Oil and Gas Leasing Help
1

Is there a way to verify the accuracy of the decimal interests other than relying on the provider? I have 3 older wells in Nacogdoches county that have significantly higher decimal interests than the 4 new wells that go thru the same piece of land.

Thank you, Louis

2

Yes, but you need several pieces of information for each well:

  1. Royalty interest on the lease
  2. Unit size in acres
  3. Tract size in acres
  4. If it is a horizontal well crossing more than one standard unit, then you need to know the percentage of the bore that lies within the unit the tract is in.

Someone from Texas can chime in, but I believe that there is a type of unit where you need to know the percentage of the well bore that goes through the tract. Then it is a matter of calculation.

3

If it is an allocation well, then you would need to calculate based on wellbore footage, not unit or tract size. If it is a pooled unit, then the calculation is done by acreage. You’ll also need to know your tract factor (do you own 100% of the minerals in your tract, or a percentage?)