Working Interest Groups LDO115

Use this program to set up Working Interest (WI) groups. A WI group consists of working interest owners, their associated interests, and any royalty or override burdens. You must set up WI groups before they can be assigned to tracts in Build Division of Interest LDO110. If you need to include Royalty Interest (RI) Groups, set them up in Royalty Interest Groups - LDO120 before entering here.

You can follow two different strategies when entering WI groups:

1. You can build a separate group for each WI owner.

2. You can build a summary group for all WI owners bearing like burdens. Separate WI groups are easier to maintain (and are recommended), but they take more time to set up.

You can also follow two specific strategies for royalty owners: (1) You can input royalty owners directly in this program, or (2) you can group royalty owners using Royalty Interest Groups - LDO120, and then attach the group(s) to a Working Interest group using this program. The second option works well when different WI groups are all burdened by the same Royalty Owners. For a given WI group you can mix the options, assigning RI groups as well as assigning specific RI owners.

There are some display fields maintained on this screen:

• Total RI Group Interest - Displays the total burdens for all royalty groups associated to this working interest group.

• Total WI Group Received Interest - Displays the total receiving interest for all royalty groups associated with this WI Group. RI Groups must be set up in Royalty Interest Groups - LDO120 in order to display here.

• Total WI Group Interest - Displays the total for all WI Owners in this group.

• Total WI Group Received Interest - Displays the total interest that this company is responsible for disbursing (the total interest for all owners flagged with a Y Rev Rcv).

• Proportionate Royalty Group Burden - Displays the proportional share of the total burdens for this working interest group.

  • For example: if Total RI Group Interest = .125, and Total Working Interest = .75, the Proportionate Royalty Group Burden = .75 of .125 = .09375.

The Total line below the Owner grid displays:

• The total gross working interest for this group (Gross-WI)

• The total net revenue for all owners (NET-RI). The total Net-RI must equal the total Gross-WI or 0. Total Net-RI equals the sum of each WI Owner's Net-RI plus the proportionate share of the total burdens. This calculates as: