Most division orders I am familiar with have a 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 a 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.
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!