Division order

I don't like the language in the division order. I'm of hidden costs associated with production. Is there something that I can attach to negate any such costs?


Try the Model Form from The National Association of Division Order Analysts

Go to that link, choose Publications, look down for Model Form.

Many companies will accept a Model Form if you download it and fill it out and send it in instead of the one you were sent. You should ask about that.

Some companies try to change the lease by including wording on a division order. Check with an attorney, but also check out that NADOA website.

Thanks Nancy I'll check it out.

read the division order carefully and add (if not on the form already), "this document does not alter or change any portion of the underlying lease." That should stop any nefarious dealings, but I haven't run across any lately. The latest one I found was trying to change the timing of royalty payments under $100.

Dear Mr. Barr,

I see that you have mineral interests located in Texas and Oklahoma.

If the underlying lease form does not expressly disallow such post production charges, there is nothing that you can do on a Division Order to change the lease form. That ship has sailed, so to speak. Division Orders do not amend any lease or operating agreement, by State of Texas NRC Statute.

If the lands are located in Texas, you must execute a Division Order for your monies to be released to you, unless your lease form provides that the execution of a Division Order is NOT required in order for your account to be placed in a pay status.

The State of Texas has a statutory form of Division Order. Google "State of Texas Statutory Division Order."

Some people will sell excellent Model Form Division Orders. They are more complete than the NADOA form. NADOA are a group of professional Division Order Analysts that are oil company employees. I prefer to use my own form, just like I use my own form of oil and gas lease and for the same reasons.

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Buddy Cotten