I'm going to show my ignorance with this question, but here it goes. When an operator sells its interest in a well or wells, does the Division Order that was originally executed for the "original" operator go along with the interest, or is the purchasing operator required to present a new Division Order to the royalty owner for execution?
Dear Mr. Garnett,
In my experience, when there has been a change of payors (who might not be the Operator), a new Division Order is issued.
I suppose that there are situations where it would not happen, but, as I say, that is my experience.
Thank you, Buddy. That was my feeling too, but I wanted some “back up.”
We just went through this process a few weeks ago. The Oil Company acquiring our royalty interests sent us new Division Orders. We also had the added issue of transferring royalty interests due to inheritance that involved a separate decimal interest.
Thanks. I went through the transferring in 1996 when my dad died. Now it’s just getting the division orders in line.