Effective Royalty Rate

On July 24, 2007 — No comments

Negotiating the royalty rate and the lease bonus, while important, are not the only relevant financial elements in a mineral lease.  Many royalty owners are seeing deductions in their checks that were typically reserved for working interest owners.  The next version of MineralFile allows users to track these deductions over time and even compare them on a percentage basis to other royalty owners in the area.  In the meantime, I created a spreadsheet that recalculates the royalty rate the owner actually receives when factoring in deductions.  Feel free to enter the information from one of your checks to see what happens to your royalty rate.

You can download the spreadsheet by clicking here.