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BASIC DIVISION ORDER CALCULATIONS NADOA CONFERENCE 2014 CHICAGO Presented by: Alyce Hoge of Land Training and Sherry Robinson of Division Order Beginnings www.landtraining.net www.divisionorderbeginnings.com.

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A division order is a contract between the owner of a royalty or other interest in oil and gas (payee) and the company that will be paying for royalty and other production on its sale (payor).

A Division Order is generally received by a mineral rights owner through the mail within 3 to 4 months after well completion. Click here to view a Division Order Model Form from NADOA. The model form provided by the National Association of Division Order Analyst (NADOA) meets most state requirements.

Additionally, division orders often contain indemnification clauses that protect the operator or payor from liability in the event of a dispute over ownership or revenue allocation.

For instance, if one month's oil sales total $100,000, you would receive $15,000 (which is 15% of $100,000) as per the Division Order. Remember, this is a simplified example. In the real world, calculations might be more complex due to factors like multiple owners, varying royalty rates, taxes, operating costs, etc.

A Division order is an instrument that records an owner's interest in a specific well. It should include the name of the well, the well number, interest type, and your decimal interest. ConocoPhillips has a team that specializes in: Analyzing and interpreting legal ownership. Analyzing and interpreting oil & gas leases.

The Division Order is a document whereby the revenue distributor (either the Operator or the 1st Purchaser) and the recipient (the royalty owner) agree on the exact decimal interest (Net Revenue Interest or NRI) owned within a well, lease, production unit, or field-wide unit.

To put it another way the formula is: lessor's acres in unit ÷ total number of acres in unit × lessor's ownership interest × lessor's royalty percentage = lessor's decimal interest.

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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
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
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