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Your decimal interest is the interest in all of the oil and gas that is produced from the unit or pool. For example, if the unit or pool produces $10,000 worth of oil and gas and your decimal interest is . 0025, your share of that $10,000 is $25.00 ($10,000 x . 0025 = $25.00).

Division Order -- Definition -- Effect (1) As used in this section, the term "division order" is limited to mean an instrument executed by the lessor of an oil or gas lease to authorize the sale of and direct the distribution of proceeds from the sale of oil, gas, casinghead gas, or other related hydrocarbons.

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 only required to have four categories of information: 1) your name; 2) your address; 3) your social security number or tax identification number; and 4) your mineral interest.

Division Of Interest (DOI) Who pays for what portion of the costs and who is entitled to the produced hydrocarbons are dictated by a well's DOI.

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.

A Division Order is typically a one-page document that the oil and gas company asks you to sign to confirm your decimal interest in the production unit or pool of which your acreage is a part. Your decimal interest is the interest in all of the oil and gas that is produced from the unit or pool.

In the case of oil and gas interests, varied ownership of the "working interest" (a cost-bearing interest) in a well or lease is common, as is that of the revenue interest owners, which are those who own non-cost bearing interests such as royalty, overriding royalty, net profits, production payments, and other working ...

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232