Newbie....don't understand my division order....help please?

Not sure what this means… Any help will be greatly received … Sec 22-6n-5w (alloc 65.77%) Sec 27-6n-5w (alloc 34.23) Oil and gas 1280 acres Royalty int .00008029 I have no clue what any of this means…

Jeannie: Looks like you are part of a horizontal drilling that has completions in two sections, with the royalty being divided proportionally to the length of perforations in each one: 65.77% in Section 22 and 34.23% in Section 27. Your royalty decimal interest is calculated based on the net mineral acres that you own, divided by 1280 (two sections) total acreage that has been unitized, times your lease royalty rate (eg, 3/16) and finally times the split applicable to the Section within which your acreage lies.

The decimal royalty rate will be your share of production. Eg, $100,000 x .00008029 = $803 (I think)

JimB

Thank you… Still not sure where we stand money wise, but am getting there!!!

Little different on the calculation of your royalty. Take your net mineral acres and divide by 640. Then multiply that times your royalty rate. Then multiply that by the % shown for that section your acres are in . You will get a little different answer but that is the way it is being calculated.

Actually, I over corrected. Divide your net mineral acres by only 640; the percentage splits (65.77% e.g.)corrects for the two sections.

Then, multiply the $ from sales times your decimal interest.

Sorry. JIMB

PS. I see that David has already corrected my error. See below.

First, you need to know which section you own in. For arguments sake, let's say section 22.

As this is a multi-unit, you need to first figure out the net revenue interest that you own in your section:

.00008029/.6577=0.000122077<-- this is your net revenue interest in this section with a lease

Next, you need to know what royalty you have. Here's a quick guide:

1/4 = .25, 1/5 = .2, 3/16 = .1875, 1/8 = .125

For this exercise, let's say 3/16 or .1875

.000122077/.1875=0.000651077 <--this is what your net revenue interest would be if you had no lease

Section 22 is 640 acres, so now you can figure out your net mineral acres:

0.000651077*640 = 0.4166+ NMA

So, if you owned in section 22 and had a 3/16 lease (or elected under the pooling @ 3/16) that NRI would equate to 0.41667 net mineral acres.