Division Order discrepancy

Oak Prairie- Winkler County, Texas

I’m looking at a Division Order package with 14 orders to sign. I just learned that the Property Number is also the API# - at least in this case)

The API # is 4249503360 through 4249503373. API# ending in 60, 61, 63, 68 and 69 say “Well API# not found. API# ending in 64, 65, 66, 67, 72 and 73 come up as plugged wells.

API# ending in 70 and 71 come up as oil wells. These wells are in Section 22, Block B-11, PSL. I found a Mineral Deed assigned to my mom from 1979 with an undivided 31.4272/640 Interest. The decimal interest on the Div. Order is 0.00306905 (which should 50% of what my mom was getting)

I found this deed on TexasFile with no other entries past 1979 for Winkler County.

If the 31.4272/640 is a 0.0491 interest from the 1979 deed, why would this Div. Order show 0.00306905 or 2X at 0.0061381, since my portion is ½.

Before digging into this I wrote the company asking for copies of deeds or title history. They say that since they acquired it and did not drill it that they have minimal records. They also say that the three active wells are producing small amounts.

My primary question is - Are there reasons that occur to people in the forum about the discrepancy in the interest from the 1979 deed to this order? I’m writing this as someone who knows nothing but at least learning more than I did last week.

Division orders are usually a formula that includes net acres/spacing acres x royalty. For example, if you had a simple vertical well in a 640 acre unit at a 1/8th royalty, your mom’s decimal on the DO would be 31.4272/640 x .125=.00613812. If you have a half of that, then you would have .00613812 x .50=0.00306906 or pretty close to what you see on the DO.

Fixed the typo.

123Me: You must take into account the royalty percentage of the oil & gas lease. In this case, as Martha states, it appears that the oil & gas lease provided for a 1/8th royalty so you would use the formula she shared. 1/8th=12.5%; 3/16ths=18.75%; 1/5th= 20%; 1/4th=25%, etc. You need to try to acquire a copy of the effective Oil & Gas Lease for each property, if you can find them. Maybe, just maybe, you mom had a file with these in it, but maybe not.

I think you meant 1/8th= 0.1250, not 0.1275.

Thank you both…that’s super helpful to get that basic understanding. If there are no paper files to show the royalty percentage and I can’t find it on TexasFile by doing a County search, are there any other options?

I did. Typo. Beryl hurricane exhaustion…

If 1/8th matches your decimal amount, then it is probably right. Most of the old leases were at that level.

Thank you…yes an 1/8 seem in line with what I have seen elsewhere.