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Net Mineral Acres vs. Net Royalty Acres: What's the Difference?

If you're involved in the oil and gas industry, you're likely familiar with the terms net mineral acres (NMA) and net royalty acres (NRA). These terms describe the rights and interests that a mineral owner has in a specific piece of land. Understanding the difference between NMA and NRA is crucial for anyone looking to buy, sell, or lease mineral rights.

Net mineral acres represent the total number of mineral acres owned by an individual or entity. This includes the right to extract minerals from the land. When a mineral owner leases the mineral rights to a third party, they retain a royalty interest in the production. In other words, if you own the mineral rights to a piece of land, you have the right to extract the minerals from that land and retain ownership of those minerals.

On the other hand, net royalty acres represent the owner's revenue interest in the production of oil, gas, or other minerals on a particular piece of land. NRA is calculated based on the assumption that there are eight royalty acres in a mineral acre. For example, if a mineral owner owns one mineral acre, they own eight royalty acres. If that same mineral owner leases that one mineral acre to an operator for a 25% royalty, the mineral owner would have two net royalty acres remaining.

In summary, the main difference between NMA and NRA is that NMA refers to the ownership of the mineral estate and the right to extract minerals, while NRA refers to the ownership of the royalty interest in the production of minerals on a specific piece of land.

When buying or selling mineral rights, it's essential to understand both NMA and NRA. The value of mineral rights is determined based on various factors, including the amount and quality of minerals in the ground, the location of the land, and the royalty rate specified in the lease agreement. Having a clear understanding of NMA and NRA can help mineral owners make informed decisions when negotiating with potential buyers or lessees.

At Shale Energy, LLC, we specialize in purchasing oil and gas mineral rights throughout the United States. We have a team of experts who can help you navigate the complex world of mineral rights and provide you with the information you need to make informed decisions. If you're interested in selling your mineral rights or leasing your land, we invite you to contact us today to learn more about our services.


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