# Why a new Division Order
**URL:** https://www.mineralrightsforum.com/t/why-a-new-division-order/66166
**Category:** McClain County, OK
**Created:** [May 3, 2022, 6:54pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166 "2022-05-03T18:54:22Z")
**Posts on this page:** 11
**Page:** 1
### Author:  [@nobshere1](https://www.mineralrightsforum.com/u/nobshere1)
#### Post date: [May 3, 2022, 6:54pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166/1 "2022-05-03T18:54:22Z")
If one already has a producing well and is receiving royalty checks, would a division order ever change for any other new wells in the same Section? Wouldn’t the existing division stay the same? And, if so, why would there be a need for another issuance?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [May 3, 2022, 7:02pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166/2 "2022-05-03T19:02:36Z")
If you have new horizontal infill multi unit wells, then each well will be a slightly different length, so that probably results in the percentage of perforations in your section being different. That would require a new DO, which should be similar to the first horizontal but not identical.
One example.
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### Author:  [@Sandra\_Griswold](https://www.mineralrightsforum.com/u/Sandra_Griswold)
#### Post date: [May 3, 2022, 7:35pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166/3 "2022-05-03T19:35:49Z")
Just curious - could this result in additional royalties being paid out?
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### Author:  [@nobshere1](https://www.mineralrightsforum.com/u/nobshere1)
#### Post date: [May 3, 2022, 7:48pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166/4 "2022-05-03T19:48:45Z")
Yep… that explains it. I should’ve figured that out. This is a very precise business. tks!
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [May 3, 2022, 7:48pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166/5 "2022-05-03T19:48:56Z")
Each new well will have additional royalties.
The other reason for a new DO is when a well is sold to a different operator. In that case, one would hope that the decimal was right the first time and the second time. That would be a transfer of royalty responsibility from one company to the next company and they require a new DO and new W-9 for an old well just to continue the same royalties.
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### Author:  [@Okcnhra](https://www.mineralrightsforum.com/u/Okcnhra)
#### Post date: [May 4, 2022, 4:33pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166/6 "2022-05-04T16:33:12Z")
Got a general question which I think is relevant in this discussion. When an extensive Division Order prepared by the operator conflicts with the original lease agreement terms, which one controls? If you sign/date the new Division Order, is it a novation of the lease agreement? And if a second Division Order appears later as the new operator takes control, does that new Division Order override the previous Division Orders and lease?
I’ve seen recently two new operator Division Orders that do not agree with the original lease as to deductions, etc., so that’s the basis of my question. Is it wise to use the operator’s Division Order or should one use a standard approved Division Order? Thanks for all your insight and help over the years, it’s invaluable to this forum…
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [May 4, 2022, 5:05pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166/7 "2022-05-04T17:05:04Z")
A lawyer would need to answer the first questions. I personally do not sign a DO that conflicts with the lease. I also do not use the operator’s DO form. I only use the NADOA (National Association of Division Order Analysts) form as it meets the minimum requirements in every state-or that is what I have been told. You especially do not want to sign if the DO overrides any particular deductions language from the lease. Just my personal opinion…
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### Author:  [@Richard\_Winblad](https://www.mineralrightsforum.com/u/Richard_Winblad)
#### Post date: [May 5, 2022, 8:01pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166/8 "2022-05-05T20:01:09Z")
> [@Okcnhra](#):
>
> Got a general question which I think is relevant in this discussion. When an extensive DO prepared by the operator conflicts with the original lease agreement terms, which one controls?
That is a great question and is open for litigation etc. Actually in Oklahoma you must be paid even if you refuse to sign a division order. Companies hate this. However, most owners are willing to sign a neutral DO that verifies % etc without changing any lease terms.
_This post is not legal, investment or tax advice, it is for discussion purposes only. Reading or responding to this post does not create an attorney-client relationship._
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### Author:  [@BBlair\_TX](https://www.mineralrightsforum.com/u/BBlair_TX)
#### Post date: [May 6, 2022, 12:58pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166/9 "2022-05-06T12:58:48Z")
That’s interesting that the sale of a well would generate a new Division Order. Callon bought Primexx but I didn’t get new orders. Maybe because they bought the whole company?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [May 6, 2022, 3:42pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166/10 "2022-05-06T15:42:48Z")
Some companies issue a new division order (sometimes called a transfer order since they are transferring from one company to another) and some just take over the pay deck and change the name at the top of the check. Just depends upon company policy.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 1, 2022, 6:55pm UTC](https://www.mineralrightsforum.com/t/why-a-new-division-order/66166/11 "2022-08-01T18:55:01Z")
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