I received a Division Order for a multi unit horizontal well in Oklahoma. The decimal interest is listed as Blanchard. The rate is figured at 3/16 and not the Blanchard 1/8. My land which is included in this is still under an old but active lease (HBP) which would be 3/16 interest rate. Is it normal that they are still saying the interest is Blanchard?
Which operator? Some operator codes have BL as Balancing Interest. Sometimes other working interest partners market their products in kind and if often gets put under a BL code.
I could ask mewbourne the same question today hacent heard back
Validus and they told me the BL was Blanchard interest but mine was figured on my lease interest (which is actually a little higher). There calculations are correct.
I was still nervous because the type listed on the DO says BL. I have since done more online research that says if the calculations add up that it is fine to sign the DO. What do you think?
If you are in Texas, then you have to sign a DO in order to get paid. Since I see that you are in OK, then you do not have to sign the DO and you only have to send in your W-9 in order to get paid. Here is a copy of a letter in lieu of DO to send instead. Replace the red parts with your information and then turn black. Send by certified mail return receipt. (Not giving legal advice)
0_Letter in lieu of Division Order.docx (13.3 KB)