Video · 52 seconds · captions on
Is your decimal interest right? (52 seconds)
Your decimal interest is your royalty fraction times your net mineral acres, divided by the acres in the unit. See how the number is built, why a small error adds up every month, and how to rebuild yours from your lease. A 52-second cut of the full video.
Transcript
That long number on your royalty stub is your decimal interest. Every dollar you are paid is that number, times what the lease sells. It comes from three numbers. The royalty in your lease: one quarter. Times your net mineral acres: five. Divided by the acres in the unit: twelve-eighty. That makes 0.00097656. If the operator uses 0.00095 instead, that is two point seven percent low. On ten thousand barrels at seventy dollars, you are $18.59 short. Every month. Rebuild yours in a minute with our free decimal interest calculator. The sources are on screen.