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Okay the next calculation I want to do is what we call the money decimal and that is this is going to help you if you're negotiating an oil and gas lease or if you're on the phone with an owner and they don't understand the impact of what their royalty payment is so what we're going to do is convert the royalty fractions in the oil and gas lease to dollars now this also works with overriding royalties and other working interest fractions but for purposes of today we're just going to focus on the royalty fraction in that oil and gas lease so your landowner is going to say well that's all well and good 1/8 equal a point 1 2 5 decimal equal to 12.5% but how does that affect my bottom line in other words how much money am I going to get in my check because I have a 1/8 royalty vs. if I have a 3/16 or a 1/5 royalty so let's say that the the landowner has 0.125 or 1/8 loyalty fraction in the oil and gas lease so what we're going to do is we're going to say okay landowner royalty owner if you have if the oil and gas company has a thousand dollars worth of profits what we're going to do is we're going to take that decimal that times 0.125 and we're going to multiply that so five times zero is zero five times zero is zero five times zero is zero and five times one is five or we could have just said one thousand times five is five thousand but we're doing it out longhand so we will embed it in our memory now I'm going to put down a place zero and I'm going to say two times zero is zero 2 times zero is zero 2 times zero is zero and 2 times 1 is 2 and then I'm going to put to play zeros down I'm going to make it easy on myself I'm going to say a thousand times one is a thousand so I'm going to say one two three and one so let's add it up this is zero this is zero this is zero this is 5 this is 2 and this is 1 now I haven't even done anything with this decimal yet but what I'm going to do to convert this one a to a royalty fraction is I'm going to say I'm going to move this decimal over as many places on as I need to to get it to the end of the number so in this case it's going to be 1 2 & 3 and then I'm going to start from the back with the quotient that I have just calculated and I'm going to move that decimal place over 1 2 3 times because there's 3 up here and 3 here and I'm going to put that decimal right here and that's.


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