Divided Interest

Definition - What does Divided Interest mean?

Divided Interest is a type of ownership owned in the Oil and Gas Royalties and Mineral Acquisition Business. This type of royalty interest is owned by any royalty interest owner. It means that each owner in a particular lease area owns distinct 25 acres. The section of a given lease is usually divided into four quadrants, that is, NE, NW, SE and SW.

Petropedia explains Divided Interest

In Divided Interest type ownerships, the minerals ownership is divided equally amongst the land owners or the royalty interest owners. A section of lease can be divided into four quadrants, i.e., North East (NE), North West (NW), South East (SE) and South West (SW). Each quadrant is assigned 25 acres. Thus the owners lying under each of these quadrants do not share any minerals or surface acres with the owners lying in the other quadrants. Therefore, in this scenario, there is no sharing of minerals or surface acres and the selling of minerals and interest rights is easily definable.

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