Most division orders I am familiar with have an RI, OR, or WI when describing the type of interest. However, I purchased a new property and when I received division orders, instead of having an “RI” to describe the interest, they had a “BL.” The decimal interest was correct, but I don’t know what the BL means. Could you tell me what the BL means and how it is different than an RI? Thanks.
Blanchard Interest. Specific to OK royalty owners. OK Senate Bill 168 has more details.
This type of oil and gas interest is specific to the state of Oklahoma and is a result of the 1963 Oklahoma Supreme Court Blanchard Decision. Ultimately, the decision resulted in Oklahoma Senate Bill 168 which established state-wide regulations for payment of gas royalties from communitized or pooled leases.
The 1963 Oklahoma Supreme Court - Blanchard Decision caused what?
This decision caused the “Blanchardizing” of one-eighth of all production from a unitized area. Under this decision, royalty owners received one-eighth of everyone’s proceeds, not just one-eighth of the price for which their lessee sold his or her gas.
(If I remember correctly, it is a 1/8th. Is this for gas?) I think some of mine have several lines on my check stub. The 1/8th portion is labeled Blanchard and if I had more than 1/8th on the lease, such as 3/16ths, the rest of the royalty was labeled RI.
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This makes sense. I had not seen this before and was apprehensive about signing division orders that included the abbreviation. Thanks so much for your response!