I have mineral rights in Haynesville Texas. I was sent a REVISED DIVISION ORDER and have a question about the Decimal Interest. I’ve been given 0.00025442. This seems a bit low. Can anyone give some insight.
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The calculation is your net acres divided by the number of total acres in the unit times the royalty assigned to your minerals.
You can ask the company to give you the equation and the breakout for how they got that number. The components are your net mineral acres, the spacing, the royalty and the calculation for what part of the productive well impacts your acres. That decimal makes me think it is a horizontal well.
This is an example of the equation in OK which is a bit different than TX way of calculating, but you can get the drift. Part of TX has sections and most uses abstracts.
OK: net mineral acres/actual spacing acres x royalty x %perforations in your section.
Here is an example: 3 net acres, 1/8th royalty, 50% of well in a section gives… 3/640 x .125 x .50%=.00029297
How are the number of acres in the unit determined? Where can you find that information?
The answer to your question about unit acres will depend upon which state you are in.
Do you have any guidance for NM, ND, or MT? Thank you for your help!
It would be better if you asked a specific question about a specific unit by posting in the state and county where the unit is located as folks that are knowledgeable about that state can direct you to the correct resources. Each state has an oil and gas commission that will have a way to look up the unit size.
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