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QUESTION: I am under a 25 acre oil and gas mineral lease in Rusk Co Texas I am 1 of 25 other persons on this lease the lease is in gross acres and covers all such lands inrespective of the number of acres actually contained therein.  Does this mean that all royalties and rentals are based on that 25 acres or does the 25 acres get split between 25 people.8

ANSWER: If I understand correctly the information you have given, the answer is yes.  I understand your information to be:

1. You are one of 25 Lessors who signed a lease covering 25 acres.
2. The language, "covers all such lands irrespective of the number of acres actually contained therein" is usually found directly before, or after, the legal description typed into the granting clause in the lease.
3. The number of acres stated in the granting clause is agreed between the parties, and is used to calculate bonus, royalties, shut-in royalties, rentals (if any) and any other payments required under the lease.
4. Each of the 25 persons who signed the lease are entitled to their share of mineral rights in the land times the amount of royalty reserved in the lease.  For example, if one of the Lessors owns 3/47ths mineral rights in the 25 acres and the lease royalty rate is 3/16ths, then 3/47 times 3/16ths is 0.01196809 royalty interest in the 25 acres.

I hope this response answers your question.  Please ask a follow-up question if it does not.

---------- FOLLOW-UP ----------

QUESTION: If the 25 acre mineral lease was signed in 1957 and there was an interest ownership change would i be entitled to the new royalty interest which a new mineral lease was signed in 2004. The old lease was a 1/8 royalty and the new is a 1/6 royalty interest.

Answer
If the 1957 lease is now expired as to all acreage and as to all depths, and the 2004 lease was signed to take its place, then yes, you are entitled to the 1/6 royalty interest.

If the 1957 lease is still alive but covers only some of the original acreage, or only a specific depth, then any well still producing from the 1957 lease would be paid at 1/8.  Any well drilled on the acreage and/or to a depth covered by the 2004 lease would be paid at the 1/6 royalty rate.

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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

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