What is a Track Factor when calculating oil and gas RI ?
Simply means your tract’s relation to the whole unit. If you own in the SW of X section (160 acres) and the well is a 2-mile well ie 1280 acres or 2 sections, then your tract factor is 160/1280 = .125. If you own in the S2SW (80 acres) then .0625 and so on. The key is the NRI which will add up to 1 for everyone in the unit. They use the tract factor to convert tract NRI which will add up to 1 for everyone in your tract to NRI. Helps when running title to break it out by tract.
1 Like
This topic was automatically closed after 90 days. New replies are no longer allowed.