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Understanding Division Orders
A division order is a document an operator uses to confirm how revenue from a well or unit will be distributed. It states the owner's decimal interest and confirms identifying information.
What a division order does and does not do
It confirms payment details. It is generally not the instrument that creates or transfers ownership, and it should not change the terms of your lease.
If a division order appears to alter lease terms, that is a reason to have an attorney read it before signing.
Checking the decimal
The decimal typically reflects your net mineral acres in the unit, divided by total unit acres, multiplied by your royalty fraction. If any of those figures look wrong, ask the operator how the decimal was calculated.
Keep in mind that a decimal covers one unit. It is not proof of your total mineral acreage anywhere else.
Frequently Asked Questions
- What is a division order?
- It is a document from an operator confirming how proceeds from a well or unit will be distributed, including the owner's decimal interest and payment information. It generally does not create ownership and should not modify lease terms.
Important disclaimer
AppalachianMineralBuyer.com is owned and operated by Titan Property Investors. Information on this website is provided for general educational and lead-submission purposes and is not legal, tax, title, geological, investment, or financial advice. Mineral laws and ownership procedures vary by state. Mineral ownership and value depend on the specific facts, documents, records, and laws associated with each interest. Consult qualified legal, tax, title, and other professionals in the state where the minerals are located. Submitting information does not create a contract, representation agreement, or obligation to sell and does not guarantee an offer.
AppalachianMineralBuyer.com is not affiliated with any state, county, regulatory, or government agency.
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