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Question
Mr. Scott
I have what seems to be a confusing royalty question.  I have a Royalty interest (NPRI) in Texas.  The royalty deed from the 1930's reads 100 royalty acre interest in 3718.5 acres encompassing 10 surveys, some completely and some partially, described by metes and bounds.  I have plotted the boundaries of the 3718.5 acres within the boundaries of all 10 surveys.  In the 1990's some horizontal wells were drilled, all within the 3718.5 interest.  There were 5 separate units ranging from 250 to 400 acres for a total of 1715 acres.  What figures do I use to get my decimal interest.  I have tried several ways.  Do I divide 100/3718.5 and then divide by 1715(unit size) x 1/8 or do I take 100/1715 then x 1/8 to learn my decimal? There was production and we were not notified.  I am researching to see if there is enough interest to pursue since I have learned of a statue of limitations as to recovery of funds. I appreciate your time and effort in your response.

Answer
To determine your decimal interest you'd want to take the royalty acres owned and divide it by the spacing unit size, then multiply the result by the royalty fraction. The result would be your decimal interest.

Looks like for you the formula would be (as you guessed) 100/1715 X .125 = .0072886 or so for your royalty interest within the combined units. You could use the same formula and substitute individual unit sizes in place of 1715 to figure out your decimal interest for a particular unit, rather than all of them as a whole.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
www.mineralhub.com
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Frederick M. Scott

Expertise

Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.

Experience

I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

Organizations
National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

Publications
National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Education/Credentials
Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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