I own a non Participating Royaty Deed that does not have a term clause Does the NPRD royalty deed remains in affect for ever. Another question if the tract is not HBP and then new leases are
taken, the NPRI to new leases can increase or decrease my royalty interest based on a new lease royalty amount. I do understand, I do not will not get any bonus consideration received any bonus considerations other that royalty payments.
Also how does a lease a ratifiaction of lease change your decimal interest if the minerals are under say tract A and not tract B . I do not own any in interest in tract B. Example 10 acres in tract A none acres in B. I
assume that my decimal interest will be cut in half. The ratification lease document that I have not signed, the cover letter with ratification document states if I do not ratify the lease my cash flow from existing well in tract A will be suspended.
Again tract A is producing tract B is not currently HBP. As I said I own a NPRD in tract A. I not sure if the unit has yet to be created. My guess is the tracts will consist of two sections for a horizontal well. I am not sure if anyone has permitted a well in tact B. Can anyone advise me should ratify or not? Again at this time my royalty proceeds have not been suspended. I assume when the unit is approve by the RRC then my interest will be diluted as in my example by half.