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Oil/Gas/Decimal percentages

Question
What is the decimal  percentage of 1/6  or 15 %. Example.    1/8. = .125

Fractions are converted to decimals by dividing the top number by the bottom number on a calculator (or in an Excel spreadsheet).  So 1 divided by 6 = 0.16666667.  Then to convert that decimal to a percentage, move the decimal 2 places to the right.  So 0.16666667 becomes 16.666667%.

To convert a percentage to a decimal, you reverse the direction of the decimal point.  So 15% becomes 0.15000000 as a decimal, because 15% is actually 15.0%, so just move the decimal 2 places to the left.  All the zeros on the end are not necessary, but computer systems are usually set up to display a certain number of digits following a decimal so you likely would see it this way on a revenue check or on a joint interest billing statement.

Converting a decimal or a percentage to a fraction is a whole lot trickier, however, because there can be an almost infinite number of ways to express a decimal or percentage as a fraction.  For instance, 0.125 can be 1/8, or 2/16, or 3/24, ad finitum.  Usually, however, a fraction should be displayed in it's lowest form (such as 1/8) EXCEPT when expressing land title calculations.  This exception to the rule allows for the division of interest between owners to be instantly visible.  For example, if John Doe's will bequeaths his mineral rights to his son 1/2, his daughter 2/3 of 1/2 and his grandson 1/3 of 1/2, the title attorney likely will express the ownerships as 3/6 to the son, 2/6 to the daughter, and 1/6 to the grandson.  You quickly see that 3 + 2 + 1 = 6, so 6/6ths or ALL of John Doe's original mineral rights have been distributed to these three owners.

Oil/Gas

Volunteer

Marsha Breazeale, M.Ed., CDOA, CPLTA

Expertise

All questions regarding division orders; ownership decimal calculations; title ownership and payer record changes (testate/intestate inheritance; deed; assignment; court order); oil and gas lease analysis for record-keeping and purposes of payment by operator or payer; pooling, horizontal wells, horizontal well allocation units; unclaimed property reporting; royalty owner relations questions. All questions concerning administration of surface land contracts and payment questions, such as for Surface Right-of-Way, Sub-Surface Right-of-Way, Easement, Surface Use Agreement. All questions regarding industry-standard and company-specific policies that affect land owners.

Experience

Sr. Staff Division Order Analyst. Certified Division Order Analyst (CDOA, National Association of Division Order Analysts) and Certified Lease Analyst (CPLTA, National Association of Professional Lease and Title Analysts) with 35 years of experience as a combination division order analyst and lease analyst in exploration and production in the oil and gas industry.

Organizations
National Assoc. of Division Order Analysts (NADOA), National Association of Division Order Analysts (NALTA), American Association of Professional Landmen (AAPL), American Society of Trainers and Developers (ASTD)

Publications
"How an Oil & Gas Exploration & Production Company Operates" and "Principles of Oil & Gas Lease Analysis: Standard Clauses", Oil Patch Press; Articles in NADOA Magazine; LandFocus EDU Professional Training Manuals

Education/Credentials
B.A.in Management from Our Lady of the Lake University in San Antonio; M.Ed. in Instructional Design from WGU Texas.

Past/Present Clients
Past 15 years: GeoSouthern Energy Corporation; Contango Oil Co./Crimson Exploration & Operating Inc.; Apache Corporation; BP America; Marathon Oil; Newfield Exploration