Can anyone explain the calculation process regarding pooled property? We have mineral right interest on 70 acres in Karnes county, This parcel however, is part of the overall unit or pool of 350 acres. We were told the the payments were based upon production out of the pool or unit not from the individual well, is this correct?
If this is true, then our interest would be roughly 20% of the production based upon having 70 acres of the 350 acre pooled unit. Am I correct so far?
Production is based on the amount of oil or gas and the dollar amount on what it was sold for times the production.
That only gives you an approximate amount, as you can't always pin down what it was sold for, etc. Gives only an idea. Once you know your division factor you can get closer.
We just went through that whole process. It has been a blessing for all of us. God bless.
Near the top of the Minerals Rights Forum page is a tab entitled MINERAL HELP, click it, then click Royalty Calculator and finally click Oil Royalty Calulator. Just fill in the blanks. Of course, you will have to guess at production volume. Keep in mind that the figure is barrels per month; therefore, you will need to "guesstimate" barrels per day and multiply by either 30 or 31, except for February. Once you input your numbers and click the button marked Estimate my monthly revenue, you will receive an email with your figure. Hope this helps. My property is located on Hwy 123 about 1/4 mile from CR887 in Karnes County.
It will also depend on the royalty percentage in your lease. If you have a copy of the division order issued after the unit was formed, it should list your percentage.