Most buyers are fairly legit, its just oftentimes both sides don’t fully understand what is owned. The buyer should run title (have an attorney look at docs and give an opinion), and the title should tell him how many marketable NRA the seller has.
And that amount of NRA, times whatever price per NRA was agreed on in a PSA, will be the amount a seller gets paid. It’s basically like a house sale where buyer agrees to pay $250 per habitable foot and seller thinks it’s a 4000 sq ft house, so they sign a PSA at $250/ft…but upon inspection the basement isn’t finished and the shed in the backyard doesn’t count, and instead of getting $1M the seller ends up getting $625k and feels like they got robbed despite it being exactly what they agreed to.
That happens. Usually a decent PSA allows either party to back out if the total $ amount changes by more than 10% or so from original estimate.
Happy to help sort out anything.
But yeah, there are undoubtedly some robbers out there also.
MNoilboy
Reading through your recent posts, what sticks out to me is your conclusion that my orri in LC 0059365 is 0.001979 for all gross acres. How did you conclude the amount of acres in each section? Like Section 30, you came up with 594.93 gross acres. My 2006 Division Order from BEPCO is Lots 1,2,3,4,E/2W/2 (W/2) S30, T21S, R28E Eddy County containing 313.12 acres more or less. You concluded section 30 had 594.93 gross acres and a NRA at 9.42. I am not disputing your numbers; I just want a better understanding of how you arrived at them.
I forgot to include my orri %. 1/4 of .00475 of 160/320 orri. (.00593750)
I think you keep giving me your DO math. Your interest in specific wells.
Not your ORRI% in the lease. Given, those two are related.
I’m working off the assumption that you have a constant ORRI % in the lease. Which is typical. I think portions of the lease are not dedicated to any wells, but you still own NRA in those portions.
I don’t know what your ORRI is. I’m trying to piece it together like the guy in Memento off of tattoos and polaroids. If your DO in a well in the N2 of Sec 29 is .00148438, then your ORRI would likely be .00149439 * 320/240 = .00197917. As your interest in the well would be 3/4 of your ORRI % because the well is dedicated to 320 acres of which 240 acres are acres where you own that ORRI %.
So I’m kinda guessing at the ORRI%, but I know the dimensions of lease LC 0059365. And how much of it is in each section. The lease is the pink line here.
So that is where I am getting the gross acres in each section.
We are likely not talking the same language at this point. And I am not sure what you are trying to resolve. Somebody made you an offer, how many NRA do they think you have? What is their math?
I wrote you attaching the offer NRA but my message has be delayed by monitors.
Well that doesn’t help me at all. Sorry. Not what I was expecting to see.
It certainly doesn’t match what you started out with in the first post, which at least sounds mostly like the legals of LC 0059365.
The simplest answer is that whoever sent you this made some mistakes or I’m clueless. But maybe not. Why doesn’t it follow any lease boundaries? On the surface that seems like a terrible description and I would guess the NRA are all wrong. But lord knows.
This may be better served being discussed off line or with someone who can look at your docs. I don’t know that this is helping you, but am also not sure what exactly you are looking for, and we are both just getting more confused.
