What's the difference? Gross vs. Net Mineral Acres

[@caesura3661]

Thanks for this video explanation! Funnily enough I own 1/3 interest in Sections 5 same block and township in Dawson. Recently received a lease agreement but of the total 145 acres listed it states I only own 26 nma. Grade school math would say 145/3=48. Unfortunately from all the documents I’ve been able to get I don’t see how the minerals are broken down between me and the other two owners. Is it possible it might be a mistake on the lease?

[@PecanTreeOG]

@caesura3661 you’re welcome! Yes, I quite often see errors in the NMA estimate provided with lease offers. Sometimes pretty big ones, as they’re often just rough numbers until someone agrees to lease. You can actually ask to see how they’re calculating the 26 nma and they should be able to provide the backup to their numbers. Either way, what ultimately matters is what’s in the county records chain of title but as you have probably found out, that can take some time to research. Most lease offers I see have an estimate of nma, a $/nma offer, an estimated total bonus, and fine print saying the total lease bonus will be adjusted up or down if it’s determined that you own more or less nma.