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Oil/Gas/non participating royalty calculation



I have a 1/4 npri under 79.2 acres that has been put in a unit of 1600.73 acres.  I have not ratified the lease which calls for a 1/6 royalty(.166667). I do not want to be dilluted.  The drill site is on my tract and the drill path crosses the length of the tract.  The company sent a division order with my interest being .002075095.  I am also curious as to what my interest would have been if I had signed the ratification.
Can you tell me if this is the right interest?
Thank you for your help

Mr. Wells,

Ratification does not affect nor give approval as it relates to the royalty can't do anything there.  Ratification only effects whether the lease can be pooled with other leases.  If they do not get your signature on a ratification then you are entitled to your share of the TOTAL revenue - period.

You are entitled to .041666667 (4.16666667% of the total revenue) of the revenue coming from the well.  You should locate an oil and gas LITIGATION attorney and talk with them about the issue.  If the well has substantial production then you could be entitled a very large portion of the revenue.

I encourage you to begin the work on this ASAP.  


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Cliff Williams


I will try to answer any question you have. Even if I reject a question, I still will give a shot at what I would do in your position. The only questions I will not take a shot at would be a highly technical engineering or geological question. I am beginning to see quite a few questions from land men and other oil companies and that doesn't matter to me either. I will attempt to help.


I am an oil and gas attorney that has been in the business for more than 20 years. I have held a series 22 and 63 securities license, been in oil and gas operations, land man, division order analyst all prior to obtaining my law degree. Today, I typically write title opinions verifying ownership of oil and gas minerals, assist landowners in negotiations on oil, gas and mineral leases, easements and conveyances. I also assist oil and gas companies with the sale of working interest ownership as well as common business law issues.

State Bar of Texas, Member of the Tarrant County Bar and the Dallas County Bar Associations.

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I have a B.S. degree which I rely upon more than my Business Mgmt degree or Law degree...

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