Need help with understanding royalty fractions

Ownership and Title
1

I have mineral rights that specify 1/8 royalty interest. This is unleased and is in production. My statements say I am getting

1/8 of 7/8 working interest 1/8 of 1/8 royalty interest

I am confused as to why this should not read:

1/8 of 7/8 working interest 1/8 royalty interest.

Thanks for any input.

Nikki

2

There is a difference in working interest and royalty interest. You would need to review from whom you received your minerals from to ensure the correct wording.

3

The total interest would be reflected by 8/8ths. You stated that you owned 1/8 Royalty interest that is unleased. I assume this is a mistatement as without a lease there is no royalty interest. I assume that you own 1/8 of the minerals that are unleased.

It looks as if you participated in the well or that it has reached the appropriate payout. You are receiving your 1/8 share of the working interest and since you are unleased you are also getting your share of the what would be the royalty. Companies tend to separate it out so that if you don’t pay your bills they can properly net your interest. It is an odd way to show the interest but you should be more concerned with the final decimal interest.