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Desk Focus 03 · MORs, NMA & 8-Decimal NRI

Mineral Ownership Report & NRI Mentorship.

Turning a 90-instrument runsheet into a Mineral Ownership Report (MOR) where every column sums to 1.00000000 is where most errors surface. Bring a draft MOR or unit calculation sheet and walk through the fraction trees, NPRI deductions, and leasehold NRI math with a mentor.

Apply for MOR & NRI mentorship

An application is a request, not a seat. Format, schedule, and any fee are agreed in writing only after a match.

Sample MOR excerpt · NPRI deduction check. Tract 1 (80.00 gross ac.) in a 640.00-acre pooled unit (Tract Factor = 0.12500000). Generic parties.

White chalk: the mentee's MOR draft. Yellow chalk: a mentor's notes.

Line Type Owner Royalty MI / NMA RI Unit Decimal (x 0.125) Mentor's notes
1 MI Dunn, E. M. 1/5 OGL MI 0.5000NMA 40 ac. 0.1000 0.01250000 RI (before NPRI)

Wait: Dunn's 1/2 MI is burdened by the 1/4 floating NPRI in Bk 77/301. Subtract the NPRI from Dunn's 0.1000 gross royalty (leaving 0.0750 tract RI to Dunn).

2 NPRI Carter, J. W. 1/4 of RI MI 0.0000NMA 0 ac. 0.0250 0.00312500 NPRI

Good: 0.50 MI x 0.20 royalty x 0.25 NPRI = 0.0250 tract RI, times 0.125 tract factor = 0.00312500 unit NPRI.

3 WI Sample Oil Co. Lessee (1/2) WI 0.5000Net 40 ac. 0.4000 0.06250000 WI / 0.05000000 NRI

Check: Lessee NRI (0.05000000) + Dunn RI (0.00937500) + Carter NPRI (0.00312500) = 0.06250000 unit WI.

What we go through on an MOR & NRI sheet

  1. Exact fractions before 8-decimal rounding.

    Keeping numerator/denominator fractions exact through every estate split and conveyance so 1/3, 1/6, and 1/7 shares do not drift before the final 8-decimal column.

  2. Fixed vs. floating NPRI burdens.

    Distinguishing a fixed fractional royalty ("an undivided 1/16 of all oil and gas produced") from a fraction-of-royalty ("1/2 of the usual 1/8 royalty"), and tracing which mineral share bears the burden.

  3. Proportionate reduction and ORRI carves.

    Applying the lesser-interest clause when a lessor owns less than 100% of the minerals, and checking whether an assignment's overriding royalty (ORRI) also reduces proportionately.

  4. Pooled unit vs. allocation well participation.

    Calculating tract participation factors by surface acreage in a pooled unit versus productive lateral foot between first and last take points (FTP/LTP) in a horizontal allocation well.

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