1. Division Order Oil and Gas- An Insight
A Division Order in a mechanism that sets forth the proportional ownership in produced
hydrocarbons, including NGL, natural gas and crude oil. Many a times, expert refer the division
order as a division of interest. In numerous occasions, a single lease or well have multiple
owners. In reality, it is highly common to have hundreds of companies owning an interest in a
single oil well. If a company wishes to hold interest in oil or gas well, they can contact an
experienced and expert attorney for Division Order oil and gas. The Order is usually received by
a mineral rights owner through mail within a matter of 3 to 5 months after well completion.
Division Order Viably Ensures that Oil Companies Pay the Right People
Just think about the costs and headache if a well’s revenue is not properly distributed to its
rightful owners. It is actually in the best interest of all the owners to get their share of the
profit. The Division Order is a document wherein the revenue distributor (either the 1 st
Purchaser or the Operator) and the recipient (the royalty owner) consent on the exact decimal
interest (NRI or Net Revenue Interest) owned within a field-wide unit, production unit, lease or
well. An Order does not change the terms of the mineral lease. A Division Order that tries to
change the terms of the lease is invalid to the proportion of the attempted change.
While it is clearly laid down that a Division Order document cannot change the lease, still there
are times when an operator tries to negotiate to ament the oil and gas lease before revenue is
distributed or different stages. So, it is crucial for you to review in details any form of document
included or received around the same time. Here, an expert and experienced attorney can play
a vital role. You may not have the knowledge or idea of how to analyze the Division Order or

2. documents. With years of experience, they can viably help in your endeavor and immediately
point out any attempt to amend the lease.
A Division Order Oil and Gas document will contain:
 Your decimal interest or net revenue interest, i.e. the NRI

Type of interest – (for instance royalty interest, mineral interest, or working
interest)
 Legal description of the producing property
 Name of the oil & gas company
Always remember that receiving a Division Order is a good thing as it infers that the production
work in your property of interest has started and you are soon to get viable revenues for the
same!