NADOA standard Division Order Form

Why is it that oil and gas purchasers now insist on using their own Division Order forms? Some of these forms would require an attorney to decipher! I have just received such a DO, with a letter that boldly states "NO SUBSTITUTED FORM(S) WILL BE ADDCEPTED."

Can they legally put my revenue in suspense if I send them a completed NADOA Division Order?

You need to be careful because some of these detailed, long division orders can change the terms of your lease. In Texas, you cannot be required to sign a division order for oil which does not match the statutory provisions. Not so with gas. At least in Texas, you cannot be required to sign a long complicated D.O. in order to receive your royalties. We use our own division order form, fill in the related well, royalty decimal and location information and send that in place of the company forms. Some companies will send a response that the company is not accepting our form, but will pay in accordance with the lease - which is the goal anyway. It has been years since I have had a company refuse to pay unless we signed its division order unchanged; that was easily resolved by one letter from our attorney. However, the laws vary from state to state. You might want to post what state or states your minerals are in. So you can use the NADOA form. Otherwise, I suggest that you simply delete every single sentence that you do not understand or do not like on the long form and initial each deletion. At the end insert a sentence that nothing in the D.O. alters, amends or overrides any provision of your lease.

Thanks for the reply, TennisDaze. When push came to shove, they agreed to accept the NADOA form. It wasn't actually a shove ... all I had to do was ask the question. Go figure!