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Oil & Gas Royalty Calculator


Use the natural gas royalty calculator or the oil royalty calculator links below to calculate your decimal interest in an oil or gas unit.  With your decimal interest in hand, you can then estimate the amount of your monthly royalty check.

Generalized Oil or Gas Production Unit

Illustrated here is a generalized production Unit.  The dashed red line represents a particular owner’s tract of land which is contributed into the Unit as a whole.  More often than not, an oil or gas production unit is made up of multiple tracts of land, and thus a mathematical formula is used to calculate each owner’s share of the production proceeds.  The royalty payment calculators will help determine the decimal interest ownership in a particular producing unit.

Note: These examples of royalty calculations do not consider situations where any royalty has been carved out (reserved) through other means, nor does it consider situations where your acreage may have been contributed to more than one production Unit.

Also, remember that state severance taxes apply in most states and will be deducted from your revenue in addition to any costs that an operator is allowed to deduct based on the specifics of your oil & gas lease. Read more about oil & gas severance taxes

Additional Reading

  • Oil & Gas Measurement – Explanation of how hydrocarbons are measured at the lease and how it relates to payment for royalty owners or mineral owners.  Defines MMBTU, MCF, BBL and more.
  • Oil & Gas 101: Oil and Gas Basics for the Mineral Owner – Article explaining the basics of energy production written for royalty owners.  Topics include drilling, production, pricing and marketing.
  • Oil & Gas Severance Taxes - Explains common royalty taxes and how these relate to mineral rights and royalty owners.