Net Royalty Acre Calculation. The most important factor is how many net mineral acres you own. It is calculated by multiplying the owner's interest in a tract by the.
To calculate your nra, first find your royalty rate and divide it by ⅛ (0.125). Net royalty acreage is divided by the total acreage in the tract. Net royalty acres are used to price mineral or royalty interest from the owner's percentage of the land.
You may hear folks (mineral buyers primarily) speak in terms of “net royalty acres” or nra. In the illustration, there are four square acres of surface and subsurface acres. Calculate your division order decimal interest call us today!
• royalty rate * mineral interest * tract participation factor = ri • overriding royalty rate * working interest * mineral interest * tract participation factor = orri • working interest *. For the basic formula, a landowner will need to know five items: How to calculate how many nra’s you own converting the number of net mineral acres to net royalty acres is easy you need to know # of nma and your royalty rate.
That portion is computed as follows: This means that you would receive 3.125% of all the. The quotient is multiplied by 1/8 to derive the portion of production to which the royalty.
300 * 0.20 = 60 nma using this. The way a royalty is calculated depends on the license agreement relating to the intangible in question. Here is the second definition:
It is calculated by multiplying the owner's interest in a tract by the. The value of an overriding royalty interest is simple to calculate since it is a percent of the working interest lease. To calculate your nra, first find your royalty rate and divide it by ⅛ (0.125).
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