Royalty Calculation for NPRI

[Buddy_Cotten]

Dear Kathy,

In the situation that you outlined, you would not receive any of the NPRI if the lease or Declaration of Pooling is not ratified. Therefore, that situation increases the oil companies Net Revenue Interest.

You might want to read this blog post and the two preceding posts to get a more comprehensive view or pooling in Texas.

Pooling in Texas - Part 3

If you have not done so, go back and read the two blogs posts that I penned earlier to set you up for this article. This blog will have to with voluntary pooled units in Texas. First, remember that in order to have a pooling transaction (that is primary production and non-MIPA) in Texas, there must be a contract. The oil and gas lease form that provides for pooling is by far the most common contract. In the pooling transaction, a cross conveyance of minerals between the owners in the po…

Best,

Buddy Cotten