When was it decided that the use of "of" was of such great importance in determining the amount of royalties? What if in the deed, there is no mention of "the usual 1/8th," it states 3 different times what is being reserved and each time states it differently:
I reserve from operation of this deed of conveyance, a non-participating 1/2 of all oil royalties, gas royalties, and other minerals that may be produced from my interest in and to (Should have said in and under, lost my faith here) said tract of land being hereby conveyed. That is, I reserve a non-participating 1/2 of said royalties (he said "oil royalties, Gas royalties and other royalties") produced from my estimated 1/36th undivided interest in said 100 acres of land, perpetually. (Whew..he said something right!).
The Grantee herein may lease said interest in said tract of land for oil, gas and other minerals, and he shall be entitled to......( gave up his executive rights for sure)...but if there is production from my said undivided 1/36 interest in said tract of land, then I will be entitled to 1/2 of the Oil royalties, gas royalties and other royalties paid upon production.
So I know "of" means divide, and from means subtract. For example: 1/2 of 1/8 is 1/16 Baffeling. Why is it so different to say 1/2 royalties. That does not sound correct. Not to a person who does not understand why you might want to leave of out anyway! Would it really make a difference when they state 1/2 royalties? And does it mean the grantor is entitled to half of all minerals?
L.B.
Good morning,
This is the time of the day where we need a laywer to chime in. I'm sure there was some legal precendent set and lawyers began using that terminology. You never know what someone is willing to sue you for, so you always want to have those bases covered. When you're in a dispute, what you signed is sometimes the only thing that is agreeable and that heightens the need for good language in contracts.
When it says "1/2 royalties" in a reservation, then the Grantor is entitled to just that 1/2 of whatever is produced from the ground. (A fractional royalty)
When it says 1/2 of the royalties, then it means 1/2 of whatever the lease royalty is. (A fraction of royalty)
When is says 1/2 of the usual 1/8th royalty, the Grantor retains a NPRI of 1/16, even if the lease royalty is over 1/8th.
Thanks for your reply. But I am still wavering
On the language. Is it clear or not? I believe it
Is a floating fraction of whatever the royalty is.
And I’m not clear on that either. So, I do enjoy
Reading between the lines, and I think you told
Me to get an attorney…if only I could find one that
Is interested since it appears to be a small interest.
L.B.
Reagan “R.T.” Dukes said:
Good morning,
This is the time of the day where we need a laywer to chime in. I’m sure there was some legal precendent set and lawyers began using that terminology. You never know what someone is willing to sue you for, so you always want to have those bases covered. When you’re in a dispute, what you signed is sometimes the only thing that is agreeable and that heightens the need for good language in contracts.
Dear Mr. Buysse,
The interest is a fraction of royalty reduced down to the mineral interest.
If the mineral interest where the royalty was created was 1/36 and the lease royalty was 3/16, then your royalty share in the event of production on that tract, unpooled would be (1/36x3/16)/2=00.2315%. If you are pooled, it would be reduced further.
Why would it be reduced if pooled? If you have a NPRI, how could you control rather you may or may not be pooled?
As a NPRI, you would receive a ratification once there is production. Then you decide whether or not you want to ratify. There is also force pooling.
Justin Brawley said:
Why would it be reduced if pooled? If you have a NPRI, how could you control rather you may or may not be pooled?
I have a NPRI interest in an 80 acre tract in West Texas that I just found out was being drilled on. It was inherited and was conveyed in a Partition Deed to my grandfather in the 50's. It states "an undivided one-half interest in and to all oil royalty, gas royalty, and royalties on (sp) other minerals produced, saved and sold from (legal description inserted)...such being a NPRI ... only out of production...leases executed shall provide for a free royalty of not less than 1/8th ....
Therefore, my question is would I be entitled to 1/2 of all production from that well if I do not ratify the lease and if I do ratify the lease would my interest then be reduced down to 1/2 of whatever the mineral owner signed a leases for?
How do you find the block number I have maps with Sections and lot numbers but I can't find the block number
and I tired a variety of combos in the TRR site it did not work