Posted on: Mar , 2021

This Month’s Topic:
How to Calculate Gross vs Net Acres (explainer video)

For this month, I’ve created another video tutorial on the topic of gross acres and net acres. The 6-minute video uses a handwritten style to walk you through each step.

My new video tackles the the difference between gross acres and net acres. Typically, a lease will state the gross acres, but if an owner has an undivided 50% interest, bonuses, rental payments, and shut-in payments are based on their 50% undivided interest.

So if the gross acres shown in the lease are 160 acres, the owner with a 50% undivided interest’s bonus is based on 80 acres, not 160 gross acres. That means, you don’t pay based on the gross acres stated in the lease, you pay based on their actual interest or net acres.

This raises several questions:

  1.  What’s an “undivided” interest and how is it different from a “divided” interest?
  2. How do you know what percentage of interest an owner owns since it is not stated on the lease?
  3. How do you calculate gross and net acres?

Please watch the video and feel free to share with anyone that might find it helpful. And, as always, thank you for your patience with my handwriting.   

Introduction to Land Management Practices

We’ll introduce the laws and principles that govern the work of a land professional, review the industry’s AAPL Code of Ethics, understand the history of legal descriptions, and learn how to calculate acreage.

This Module provides a full overview of the land management practice. If you only have a training budget for one course this year, this is the best option to get a feel for the industry and the lay of the land.

Introduction to Division Order Practices

In similar fashion, our DO introduction module provides students with a firm grasp of the career path, role, qualities and qualifications of a Division Order Analyst. We start with the history and move to today’s technology and practices as well as look into the industry assocation of NADOA

Again, this first module can quickly confirm if the role of Division Analyst is right for you.

PLM Module 1: Introduction to Land Management Practices begins April 6th.

DO Module 1: Introduction to Division Order Practices begins April 6th.