DANA,
I NO LONGER OWN ANY LAND, BUT I OWN THE MINERAL RIGHTS OF THE LAND I USED TO OWN SO HOW EXACTLY DO THEY DETERMINE HOW MUCH MINERAL RIGHTS I OWN. THIS IS WHAT IT SAYS…0.004980 NET INTEREST. CAN YOU TELL ME WHAT THAT MEANS?
THANKS FOR ALL YOUR HELP AND INPUT
DLH
I can't really say what the .004980 net interest means without knowing more about your situation.. Is the .004980 what they are offering to buy? Are they offering to buy part of all of your mineral rights?
Usually the mineral right holder gets 1/8 of all production from the unit (if they haven't sold any of their rights) A unit cannot be larger than 704 acres. So, if you kept all your mineral rights on this 65 acres, we could then say 65/704 = 0.09233 is your total percent of the 704 acre unit. Then, if your mineral rights are at 1/8, you would take the .09233 x 1/8 = 0.015411 and that would be the percent they would use to pay you.
Let's say you had 8 producing wells in the unit and they produce a total of 20000 CF per month. Our wells paid $4.21 per CF for January 2011. So, you would take 20000 x $4.21 = $84,200. You would then take $84,200 times your interest. If your interest is 0.015411, then you would gross $971.77 for the month. However, if your interest is really the 0.004980 as you state above, then your gross would be only $419.32. After your gross, there all all kinds of taxes and fees deducted.
Also, as you can see--smaller units are better..you get a bigger percentage. Hope this helps.
DANA,
0.004980 IS THE ONLY PORTION I OWN OF THE MINERAL RIGHTS. I WAS TAKEN (SCHEMED) BY A VULTURE WHO PRAYS ON THE ELDERLY AND THE UNKNOWING. HE TOOK (BOUGHT) MY MINERAL RIGHTS BACK IN 1999. I THOUGHT IT WAS A ROYALTY CHECK,DIDNT READ THE FINE PRINT. I TOOK HIM TO COURT AND WON BACK ONLY 3/4 OF THE INTEREST, SO THATS WHY IT READS 0.004980.
ANYWAY,THANKS FOR THE HELP
DLH
I have putative rights to two leaseholds owned by my deceased father-in-law. Don't know exactly where, but suspect that they are near Mexia. Where is your property located?