Understanding division orders

BearCteek Bill… I received my division orders. But they are in Greek as far as I am concerned. Lol. Can you please explain how they divide and how they come up with the percentages PLEASE?

It can be hard to follow sometimes, especially when the ownership is fragmented.

In simple terms, there is a spacing unit for the well: “N” number of acres.

Then there is how many acres of mineral rights you own inside the well’s spacing unit. “Y”

Then there is what percentage of those mineral rights you own: “Z”% (Maybe you share it with other family members)

Then there is the royalty percentage set in your Lease: “L”%

(Y x Z x L) /N would be your ownership in the well.

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Pam i’m not sure how Rose City is calculating theirs. In simplest terms you would take your acreage which i believe is 12.5 and divide by 720 which is the total unit acreage. Then multiply their royalty offer which i will assume is 1/5 or .2

12.5 ÷ 720 × .2 = .00347222RI

You multiply that number by price of oil and barrels of production.

The completion report shows it’s at 250 barrels per day potential. That could go up or down as time goes on. It’s still producing water. Once that goes down production usually increases especially on horizontal wells.

Depending upon the clauses in your lease, you may have deductions for taxes and post production charges.


Pam i dont think we can exchange messages on here privately but if you have a Facebook or LinkedIn account, maybe we can discuss more.

Bill I’m on FB under Pam Murray. Bill I’m on FB as Pam Murray.

My wife just sent you my phone number through FB. I don’t have an account.

Or she gave my number to the wrong pam. I hope not.

Pam, I too am receiving royalty checks from Rose City. I tried to find you on Facebook but too many with similar names. I am also so confused about all this, I don’t even know how to ask a question on this forum and I have been reading comments for 4 years. Your comments have been helpful.

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Hi Becky. If you have a FB page I will see if I can find you. I do SO understand your confusion. I was fortunate in the fact that someone, let’s say, found me and helped me with all of this. I still do not know or understand it all but I have learned a lot and will be glad, if I can, to help. My Facebook is the one with the red rose . Look forward to hearing from you.

Thank you, Pam, I may have found your Facebook profile, or I sent a message to the wrong Pam Murray… My Facebook is Becky Wall Taylor…

Becky I found you but it will not let me send a friend request.Ill check on messenger and see if I can find you there