A division order is defined as an instrument signed by each mineral interest owner in a unit which establishes the proportional share each interest is to receive as a result of production of the well. Mineral interest owners can be working interest owners, overriding royalty interest owners, non-participating royalty interest owners, and royalty owners.
Every individual or entity who has an interest in a well must be paid within 120 days of first production. Determining the exact interest of each owner involves an exhaustive examination of the title opinions, the title curative, and size of the production unit. Once pay status is determined for each owner, Division Orders must be prepared and issued to each interest owner.
The land professionals at TWW are prepared to assist our clients in preparing and issuing Division Orders.