Pennsylvania Division Orders

Law & Legal
1

Hello all, In the state of Pennsylvania is it legally required to sign a Division Order? What are the ramifications if I do not sign the Division Order yet receive royalties?

I only ask as it seems difficult to verify a Division Order for an operator when the operator is providing you the information to calculate the decimal interest with.

Does PA law require a signed Division Order to receive royalties? If unsigned can the operator refuse to disperse royalties?

My argument is it’s best to be left unsigned (if legal) and receiving royalties. That way if there is ever a dispute within a pooled unit, you have the opportunity to join that dispute if advantageous.

2

Go to the Pennsylvania Oil and Gas statutes and look up the answer. Some states so require them and some do not (KS, LA, AR, OK). I think PA may require them.

Ask your operator or call the oil & gas commission for your state. You may be able to use the NADOA form instead of any long DO that tries to change the terms of your lease.

3

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