Unitization, or unit operations, refers to the consolidation of mineral or leasehold interests covering all or part of a common source of resources.
What are royalties?
Royalties are a percentage of interests retained by lessors which are agreed upon in a mineral lease.
What is a clearing title?
Clearing a title is the process of verifying that the lessor owns the interest. The title refers to the legal right to the property.
How is royalty interest calculated?
To calculate royalty interest, take the number of net mineral acres that you own within a well’s drilling or spacing unit and divide that number by the total acres in that well’s drilling or spacing unit and multiply that number by the royalty interested negotiated in your lease.
What is a division order?
A division order is a document that delineates the proportional ownership of a specific property and authorizes the distribution of funds based on that information. The division order does not represent a sale of property or any changes to a lease. By signing and returning a division order, the lessor confirms that the information within the document is correct.