After recently discovering that my mother had owned a royalty interest in Martin County Texas when she died in 1975, I have received a division order but am confused by the decimal interest. I have seen the equation on other posts but I don’t know where the factors come from to plug in. The deed recites 2.5 / 170.5 interest in the parcel (containing 170.5 acres) and 2.5/170.5 of 1/8 as the royalty amount on both gas and oil. I inherited 1/2 of the interest.
Help please!
This calculation makes sense. Thank you so much. Any idea how they came up with .001374635?
Sorry. No idea. I withdrew my post. Suggest you contact the company and/or await others to respond in this forum.
Thank you anyway. I have inquired of the company but no response yet.
Usually the equation is net acres/spacing acres x royalty. You need to find out the spacing acres and if it is a horizontal well if there is another term at the end for the percentage of the footage that you have on your acres. Ask the Division order analyst for the equation that they used to calculate your decimal amount.