Net mineral acres are based on fractional interest of minerals in a tract. 1/2 minerals in 100 acres is 50 NMA. With all rights, you can lease and receive bonus, delay rentals & royalties on 50 NMA. If you do not have executive rights (leasing rights), then someone else leases on your behalf. What you receive depends on the exact wording in the deeds. You may own minerals without executive rights and be entitled to the bonus, delay rentals and royalties as negotiated by the holder of executive rights. Your minerals will also be subject to other lease terms. It is important to get a copy of the lease. More commonly, others hold NPRI and get a royalties only (no bonus or delay rentals). How NPRI is calculated is again dependent on wording of the deeds. Some specify a set fractional royalty and others specify a fractional share of the royalty rate. 1/64 is very different from 1/64 of royalty rate. Deeds can be complex to interpret and there is a long history of case law in this area. In Texas, references are generally to NPRI, non-participating royalty interest, rather than to royalty acres which is more commonly used in other states. Perhaps because the royalty rate is not necessarily fixed. It is important to know exactly what you own.
Net mineral acres and executive rights are not necessarily the same. You can actually have executive rights with very few net mineral acres, In Texas, a mineral estate consists of five different rights.
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The right to develop the minerals with the right of ingress and egress.
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The right to lease the minerals.
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The right to a bonus.
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The right to rentals.
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The right to royalties.
All of these above rights can be separately conveyed.
One needs to be very careful when evaluating offers to buy their interest. I receive at least one offer a month to buy my “royalty interest” in certain wells. However when you read the actual conveyance they want to use, I would be conveying my entire mineral interest in the county. Very deceptive.
I got better words than deceptive. 
I had to have abstract work done by a certified professional to learn what we actually own. So many offers ,telling me what we owned , but none of the numbers matched. Go figure , seems they all went to a different school … Anyway out of a quarter section we own 115 NMA / 52 royalty acres. Over the years it was sold off by my grand father to survive hard times. ( goes all the way back early 1900’s) This is leased non producing with activity all around . I have studied this up & down . Forgive me , I am just a dumb country boy trying to survive diffucult times. When a offer is made ,why is it per net mineral acre, when what they are really after is the net revenue interest . (which from my understanding breaks down into a fraction & that is what you are actually paid once you have a producing well , is that close to being right ? ) Again thanks for the input & hope this rambling makes sense…
Aaron,
I am going to make some assumptions here which may or not be correct. The deeds and record may show something different.
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You own an undivided mineral interest of 115/160 in the 160 acre quarter section. Assumes the quarter section has 160 acres.
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It appears your grandfather did the same thing mine did during the hard times by selling off some of the royalty. I am going to assume your grandfather kept the executive rights and only sold non-participating royalty interests, leaving him with 52/160 of the royalties.
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Your grandfather may or may not have sold off the right to rentals and bonuses as well. Again, you need to look at the deeds.
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The party making you an offer may be offering to buy your royalty interest or he may be trying to acquire your entire mineral interest which would include your royalty interest, executive rights, bonuses and rentals. You have to carefully read the conveyance they give you.
I am a bit surprised the Texas Attorney General has not become involved in some of the practices used by mineral buyers. Some of them come very close to fraud. I receive at least a couple of offers a month saying they want to buy my “royalties” in certain wells. Then when you get to read their conveyance, they are acquiring my entire mineral interest in the entire county. Instead of buyer beware, the seller needs to beware too. Always seek legal advice.
Jon,
My interests re in T2N, Blocks 31 and 32 and T1N Block 32. Looks like you are north of Luther and I am south of Luther. Ditto on our grandfathers selling off minerals in the 30’s. I don’t blame them because times had to be pretty tough then.
Dave , Your assumptions are pretty good. Wish I still had all of what he sold off, not to mention the other properties he sold. Out of curiosity are any of yours located in my neck of the woods ? ( T2-BLK32 -Sec3) . Also, Thanks to TennisDaze . It is very hard to find honest people that share their knowledge attained from the school of hard knocks …
Good Afternoon,
We have 160 acres in DAWSON County for lease not sale, it is located in the N/W 4 section 28 block 35 T5N we own all the minerals and all the depth there are 4 of us if you are interested please contact me at [email protected] Thank you
I heard some companies are leasing (not buying) minerals for up to $45,000 per acre. Is this true… where… who would spend that much?
Dave… Agreed.
Jimmy: Thanks… very good points.
Jack, Any offer that high would have incredibly unique circumstances if it is a legitimate. Perhaps an operator had a tract that couldn’t be traversed without that lease so they paid that price. Or maybe it is a very small tract that is owned by hundreds of owners so on a price per acre, it had to get that high to pay someone $500 just to get them to sign a lease. The specifics of each deal must be evaluated, not just the price per acre. Typically a price nearly that high in Howard county would be to buy extremely large leasehold positions (thousands of acres) that are ready for horizontal development (SM Energy, Callon, etc) and even those don’t get that high. Good luck getting your minerals leased!
Jack,
I find this a bit incredulous. I don’t know of anyone paying even a tenth of this much for a lease on non-producing minerals. I am not even sure any producing minerals are going for this much. This sounds like an offer from on of the boiler room mineral buyers that offer a fantastic price to get you interested and then they lower the price after doing their title check and due diligence. Either that or the conveyance you sign actually conveys all of you mineral interests in the county and not just a specific tract.
I recently got a lease offer of $2500. per net mineral acre in Section 26, Block 31, Twp 2 North, T&P RR Co. Survey, A-1061, Howard Co., Texas I own 20.09375 Net Mineral Acres in that area. The offer is from Grenadier Energy Partners II, LLC. What’s the going rate per lease acre in my area and has anyone dealt with this company in the past. Thank you for your help.
Alison, I also have 30 acres in section 16 block 32, and have been offered $2500 per net mineral foot… I have not done any background check on Grenadier yet. I will get to looking right away.
Know, we have 30 ayers in section 16 block 32 and have been offered $2500/net mineral foot
Ronnie next door to the West in A-139 SM Energy has 4 approved permits;;; API 227-39016-17-18-19…from the same pad. Could this be the location you are seeing?
http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPubli…
GIS Map of Howard Co. A-140/Blk 32 T1N:
CLICK ON MAP TO ENLARGE
Clint Liles
MIchael Duell Proctor. Small world. We are cousins-- my father was Jack. Evidently we both own pieces of grandpa Lee’s old farm. A nice surprise. In the family since (iirc) 1927.
Stated-simply, Grenadier’s $2500/acre offer is laughable. I have turned down considerably more. Based upon my experience, if they really, truly, cross-my-heart promise to drill in the next 6-8 months, I might take $15-20K, or might not. Much depends on those neighboring permitted wells.
BTW, I’m really strong hands. That is, I can afford to wait and am not afraid of missing an opportunity. So far, this has worked out just fine. YMMV, naturally.
Per the rrc map, there are permitted wells to the immediate west and south of section 16. Been shot recently. So likely somebody figures there is something down there.
Howard Section 25,block-32,township 1 north,abstract 140 in Howard County Texas been offered $5000 per acre only have 5 acres but had four companies calling with offers. Now there is a rig set up close TRINIDAD DRILLING RIG #430 ANYONE KNOW ANYTHING ?
Clint, so does the well have to be located within the blue box on the map to be of any interest to me? Thanks Ron