What is a division order in Texas?

A Division Order is an instrument which sets forth the proportional ownership in produced hydrocarbons, including crude oil, natural gas, and NGL's. Sometimes the Division Order is referred to as a division of interest. More often than not, a single well or lease will have multiple owners.

How do you calculate royalty interest?

Net revenue is the amount that is shared among the property owners. To determine net revenue interest, multiply the royalty interest by the owner's shared interest. For example, if you have a 5/16 royalty, your net royalty interest would be 25% multiplied by 5/16, which equals 7.8125% calculated to four decimal places.

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Texas Division Orders

Division Order Example

Name: Texas Division Orders
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.82 (427 reviews)

Category:

Texas Oil Gas and Minerals - Lease Riders

State:

Texas

Control #:

TX-OG-055

Format:

Instant download

Description What Is A Division Order

This lease rider form may be used when none of the provisions contained in the division order shall diminish, alter, or affect the rights, titles, or interests vested in Lessor by the terms of this Lease. No division order which Lessor may be requested to sign shall contain terms other than those terms and provisions expressly allowed by any applicable statute of the state in which the lands subject to this Lease are located.

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Division Orders Us Other Form Names

What Are Division Orders

FAQ

Royalty interest in the oil and gas industry refers to ownership of a portion of a resource or the revenue it produces. A company or person that owns a royalty interest does not bear any operational costs needed to produce the resource, yet they still own a portion of the resource or revenue it produces.

A Division Order is an instrument which sets forth the proportional ownership in produced hydrocarbons, including crude oil, natural gas, and NGL's. Sometimes the Division Order is referred to as a division of interest. More often than not, a single well or lease will have multiple owners.

Use this formula to calculate your decimal share of royalties from the producing well: (Mineral Interest Share) times (Royalty Rate) = (Royalty Share Decimal). Example 1: (1/3 x 100% mineral interest) times (1/8 Royalty Rate) = 1/3 x 1/8 = 1/24 = 0.04166667 RI.

A Division Order (DO's), also known as a Division of Interest (DOI), is the instrument which details the proportional ownership of produced minerals, including oil, liquids, natural gas, etc., in a well or unitized area of production.

Your decimal interest is calculated based on your royalty interest in the tract or unit on which the well is drilled.Or, you might own a non-participating royalty equal to 1/16 of the royalty reserved in any lease of the lands in the unit (a fraction of the royalty).

Net revenue is the amount that is shared among the property owners. To determine net revenue interest, multiply the royalty interest by the owner's shared interest. For example, if you have a 5/16 royalty, your net royalty interest would be 25% multiplied by 5/16, which equals 7.8125% calculated to four decimal places.

A division order is a record of your interest in a specific well. It contains your decimal interest, interest type, well number and well name. Division orders are issued to all that own an interest in a specific well after that well has achieved first sales of either oil or gas.

Royalty Interest an ownership in production that bears no cost in production. Royalty interest owners receive their share of production revenue before the working interest owners. Working Interest an ownership in a well that bears 100% of the cost of production.

The percentage each lease tract contributes to the overall PA (or Communitized Area) is referred to as the Tract Participation Factor (TPF). percentage of unit revenue was multiplied by the Royalty (or ORRI) burden, to determine the royalty burden for each tract.

Division Order Example

Description What Is A Division Order

Division Order Related forms

How to fill out Texas Division Orders?

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Division Orders Us Other Form Names

FAQ

What is a royalty interest?

What is a division order in Texas?

How do you calculate royalty decimal interest?

What does Doi mean in oil and gas?

What does decimal interest mean?

How do you calculate royalty interest?

What is a division order from an oil company?

What is the difference between working interest and royalty interest?

How is tract participation factor calculated?

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