Royalty decimal · Net revenue interest (NRI) · Monthly royalty check estimate
Tax rates differ by state and product and are not preset: enter the rate from your check stub or state revenue department.
How the economics tools fit together: NPV, payback, tariffs and operating costs
Royalty decimal = (net mineral acres you own in the unit / gross unit acres) x lease royalty rate. For example 40 net mineral acres in a 640-acre unit at a 1/4 royalty is 40/640 x 0.25 = 0.015625, which a division order typically shows to eight decimals as 0.01562500.
NRI is the share of production revenue a working interest owner receives after royalties and overriding royalties are paid. NRI = WI x (1 - lease royalty - ORRI). A 100% WI lease with a 1/4 royalty has a 75% NRI.
Working interest is your cost-bearing share of the lease. Net revenue interest is your share of the revenue after burdens. For a pure working interest, WI is always at least as large as NRI; a 50% WI with 1/4 royalty gives a 37.5% NRI but you still pay 50% of the costs.
It depends on the lease and state law. Some leases allow the operator to deduct gathering, compression, transportation and processing costs from royalty; others are cost-free. Enter your $/bbl and $/Mcf deductions if your check stub shows them.
Use it as an estimate. The operator sets the decimal from title and the division order controls payment. If your check does not match, ask the operator for the decimal and the volumes and prices behind it.