The recent discussion of Gross/Net Mineral acres left me a little bleary - perhaps the following will be of assistance.
EXAMPLE - Accounting for Gross/Net Mineral Acres in North Dakota 1. In 1908, assume that ¼ Section (160 Acres) was homesteaded. The outcome of this was that the homesteader acquired title to 160 Surface Acres/160 Gross Mineral Acres/160 Net Mineral Acres [Call the homesteader “Owner A”]. 2. In 1955, assume the same ¼ Section was sold with provision that Seller/“Owner A” will retain 50% mineral ownership. a. Buyer in this transaction [Call the buyer “Owner B”] would have acquired title to 160 Surface Acres/160 Gross Mineral Acres/80 Net Mineral Acres. b. Seller/“Owner A” would have retained title to 160 Gross Mineral Acres/80 Net Mineral Acres. 3. In 1960, assume “Owner A” dies leaving his interest to 4 offspring. Now each of the offspring acquire title to 160 Gross Mineral Acres/20 Net Mineral acres [Call the offspring “Owners A1, A2, A3, A4”]. 4. In 2006, assume “EOG” comes to lease total Mineral Acres in the original ¼ Section (160 Acres). a. From “Owner B” they lease 160 Gross Mineral Acres/80 Net Mineral Acres. b. From “Owner A1” they lease 160 Gross Mineral Acres/20 Net Mineral Acres. c. From “Owner A2” they lease 160 Gross Mineral Acres/20 Net Mineral Acres. d. From “Owner A3” they lease 160 Gross Mineral Acres/20 Net Mineral Acres. e. From “Owner A4” they lease 160 Gross Mineral Acres/20 Net Mineral Acres. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Bakken Shale Discussion" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/bakken-shale-discussion?hl=en -~----------~----~----~----~------~----~------~--~---
