Louisiana Division Orders
Description
How to fill out Division Orders?
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FAQ
The division of interest (DOI) specifies the owners involved in a particular production network or in a sub-object of a production network. It also specifies the interest type and the gross and net interest that each owner is entitled to.
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.
What is a Divided Interest? A divided interest occurs when the owners of a working interest receive revenue and pay for expenses based on their ownership of specific acreage. They have no ownership of or responsibility for the revenues and expenses associated with adjacent acreage.
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.
A division order is a contract between you and the operator (an oil and gas company). Typically, receiving a division order means that the operator is about to drill, or that the operator has already drilled a well and your minerals are producing.
A divided interest in property refers to the concept where multiple parties each own a portion of the rights to a property, but those portions are distinct and separate. This can occur in a variety of ways, depending on the specific property rights involved and the arrangements between the parties.
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.
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.
