Oops, meant each child inherited 2.5 acres so total of 5 acres. Also the fact that half of the Reedbuck wells are in another section ( section 6) means the interest is cut in half.
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You’re info is golden thank you! So we discovered its 10 acres not 35. We don’t know our decimal yet. Many people are telling us it should be 20k- 30k an acre for bonus now? So with sections being pooled we got screwed? Would they owe retroactive money to us now since theyve been drilling? Also, when lease is signed you receive the bonus immediately then monthly is the royalties? How long after signing did they wait to get check? Thank you!!!
Also may i ask what their interest percentage is? Ive been told we shouldn’t take less than 25% for that area. When you’re saying interest is cut in half does this mean we would get 12.5% interest then?
Do they pay by mineral acres or royalty acres when paying bonuses? So we have 80 royalty acres right?
So we would multiply 20,000 by either 10 or 80 depending on how they pay. Of course hypothetically speaking if they gave us 20000 an acre.
Random comments:
Bonuses are per mineral acre.
You should get a 25% royalty.
I thought the Reedbuck unit was 1305 acres, but for simplicity sake let’s says it’s 1280 (2 sq mi).
If you have 2.5 acres like Susan’s example, leased at 25%, then your decimal is:
=2.5/1280 * 1/4 = .00049
By interest cut in half she means if the wells were just in one Sec, you would have twice the interest in the well. But in theory the wells would be 1/2 as good as they are 1/2 as long so that’s a wash.
Your 10 acres leased at 25% would get you a decimal 4 times that big. .00196
You would have 20 royalty acres if you leased 20 acres at 25%. 10 x royalty/12.5 = 20.
I’d be real impressed if you were getting 20-30k bonus per acre. That’s closer to what somebody might pay to buy your acres, Imo.
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You would have 20 royalty acres if you leased TEN mineral acres at 25%. 10 x royalty/12.5 = 20.
Fixed
LDetter,
If the landsmen representing the Lease Operator are just finding you now . . . . you may have a significant opportunity here, but I am not sure. If the production company is already producing from your property without properly leasing your interest, you should be in the "Cat birds" seat. With proven production you should be able to require more than the initial 20-30 acre bonus was. Also, you have the opportunity to require a significant increase in the royalty interest. I would be thinking in the area of 25 to 30% royalty due to the inepness of the Lands Department researching the lease and excluding your interests.Ask for $500 .00 Per mineral acre, that is what most are getting ,sounds lime you really got a Whopper There Name, Congratulations!
Sorry for the misspelling, this phone has a mind of it’s own.
Royalty is not a 1-shot deal. Royalty is the payment you receive when a well is producing; it is a percentage that is stated in the lease, and it is usually paid to you on a monthly basis when the well is producing. If your lease provides for a 20% royalty, that means you will be paid for 20% of the production from the well, when, as, and if the well produces. The 1- shot deal that you mention in your post is the up-front amount that is paid to you when you sign a lease, and it is usually referred to as the lease bonus - it’s a 1-time payment for signing the lease.
A little off topic - What is the current ball park rate per ROD in reeves?
Better to post that question in the pipeline topic.
I did post it there. Yesterday.