Q1. - Why does my check keep getting smaller?
Most wells’ production decline overtime. This is
because there is only so much recoverable oil and gas in a reservoir. As either the reservoir pressure declines, or the
well waters out, your monthly check will get smaller.
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Q2. - How do I calculate my royalty interest?
We get asked this question a lot. Here is a simple step by step guide to calculate your royalty interest.
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Take the number of mineral acres owned, and
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divide that number by the acres in that well’s drilling or spacing unit, then
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multiply this
number by the royalty received as per your oil and gas lease.
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Example: - You own 10 net mineral acres, the spacing unit is 640 acres and the royalty is 1/8, what is my royalty interest?
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10 net mineral acres divided by 640 acres =
.015625
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multiply .015625 times 1/8 and you get .001953125
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.001953125 is your royalty decimal interest.
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This is
the number you should see on your check under the column “decimal interest.”
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Q3. - What is the difference between a
royalty interest and an overriding royalty interest?
A royalty interest is generated from the ownership of minerals in a
section. When a well is to be drilled, your minerals are then leased for a certain royalty. Common royalties are 1/8, 1/6
and 3/16.
An overriding royalty interest can be assigned from a working interest owner to a person. An overriding
royalty interest may also be generated by someone who has leased a person’s minerals and then assigns their leasehold to a working interest owner and retains an override. Neither a royalty or overriding royalty interest owner
pays any well costs associated with the drilling, recompletion or workover of a well. They also do not pay any of the
monthly operating expenses associated with a well.
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Q4. - How do I find out my drilling or spacing unit size for a well?
Call your State’s Oil and Gas Conservation Commission and ask them how to get a copy of a drilling or spacing unit
order for the well you are interested in. Here are phone numbers for the appropriate state
agencies:
Alabama Oil & Gas Board
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205-349-2852
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Arkansas Oil & Gas Commission
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479-646-6611
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California Division of Oil & Gas
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916-445-9686
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Colorado Oil and Gas Conservation Commission
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303-894-2100
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Kansas Corporation Commission
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316-337-6200
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Louisiana Department of Natural Resources
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225-342-4500
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Michigan Department of Natural Resources
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517-334-6961
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Mississippi Oil & Gas Board
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601-354-7142
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Montana Oil & Gas Conservation Division
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406-444-6675
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Nebraska Oil & Gas Conservation Commission
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308-254-6919
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Nevada Dept. of Conservation & Natural Resources
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702-687-4360
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New Mexico Dept. of Energy & Natural Resources
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505-827-7132
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North Dakota State Industrial Commission
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701-328-8020
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Oklahoma Corporation Commission
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405-521-2301
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Texas Railroad Commission
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512-463-6887
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Utah Dept. of Oil, Gas & Mining
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801-538-5340
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Wyoming Oil & Gas Commission
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307-234-7147
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Q5. - What if I don’t think I’m being paid properly?
Call the operator of your well and explain why you do not feel you are
being paid properly. Ask to speak to a division order analyst, or a revenue accountant in charge of your property. In
order to answer your question(s), the operator will need the name and location of your well.
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Q6. - What is a split stream connection?
A split stream connection is when more than one purchaser buys gas from a well. When this
occurs, you must monitor the split stream connection to be sure you are receiving your full share of gas revenue
attributable to your interest.
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Q7. - How do I find the monthly oil and gas production from my property?
Look at your check stubs for a heading that says “Gross Volume” or “Gross Production Volume.” This will give you the production
for that month. If you want historical production, check the appropriate state agency web site found under
Links or call
IHS Energy Group at 1-800-468-3381. IHS Energy Group can provide historical production data for a fee.
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Q8. - If I ask for an offer for my interest, am I obligated in any way?
No, you are not obligated in any way.
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Q9. - How do I receive an
offer?
You can either call us at (405) 604-0781 or you can fill out a short form that is transmitted to us by
clicking here.
We will call you with an offer after we receive your
information.
If you could not find your question here, please
contact us and we will be happy to answer your question.
If you prefer to e-mail us your question,
click
here. We will respond quickly.
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