We have started receiving Blanchard Interest on some Garvin, Grady, McClain wells in which we already receive regular Royalty Interest. This week we received a Division Order from BCE-Mach for Blanchard Int on some additional wells in the Woodford, Mississippi Lime. Just trying to understand why this has started happening the last few months.
I noticed the same on my first royalty check from Validus after they took over as operator of a well in Garvin County. I was waiting for my next royalty check to see if it would revert back. I am looking forward to see if someone here has some insight on the change to Blachard Interest. Thanks for posting.
I noticed the use of the term with my February 2025 check. Only the gas and plant products, not the oil. And only with the newest of wells. Not the older wells. Using the Google browser type in “Blanchard Interest Decision” and you will get quite a bit of information on the subject.
Should have said Gulfport February 2025 check detail statement.
Google AI: Blanchard interest is a concept originating from Oklahoma law that dictates royalty interests in pooled oil and gas units are communitized, meaning royalty owners receive a proportionate share of production based on the entire unit, not just their leased tract. When operating in Oklahoma, the “Blanchard Decision” mandates that a working interest owner must pay any “excess royalty” (above the traditional 1/8th) stipulated in a lease from their working interest share to meet all royalty obligations within the unit.
Contact the Division Order Analyst for the operator and get an explanation. Ask them if they are working off a pooling or a lease and what royalty are they carrying for you. Also ask what net acres and what royalty they are showing. Then you have the important info for your files. If you do not have a copy of the original lease, pooling order or unitization order, ask for a copy. Very important to keep with your documents.
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Just a hello to Martha and Don. Still reading the comments and still learning about Oklahoma law.
Jim Brock
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