"Here is a link to the National Association of Division Order Analysts model form
You can compare what you get with this, and if there is anything of substance different, you might submit this form instead. I read that people do that sometimes."
"There could be one missing step in the above equation. The formula works if all of the owners lease acres are in the unit . So for example if the owners lease is for 100 acres and only 70 are in you must divide 70 by 100 as your starting point."
The 'typical' formula for a Division Order of a unitized parcel is...
MI x RI x Tract Factor = Decimal
MI = Mineral Interest (1/2 Ownership of a parcel)RI = Royalty Interest (15% Lease royalty)TF =…"
"In general, just make sure there isn't anything in the D.O. that modifies the terms of the lease. They usually say that you "certify" that you own x.xxxxxx in the unit. I don't like anything that sounds like a…"
"Hi Kevin, In general the division order should show your % of the total revenue.
As I understand it, the calculation is
1) divide your acres in the unit by total acres in the unit
2) multiply that by your interest in the oil and gas (if you own all…"
I'm trying to understand what the Division Order is for and things to look out for to make sure everything is in line to what it should be. My current understanding is it verifies your acres in the unit and you net acres within the unit. I just don't want to miss anything so any info is appreciated.See More
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]