Common Questions

1What is a division order?

A Division Order is a written outline that directs the distribution of proceeds from the sale of oil and gas. A Division Order describes the specific property involved, and it also specifies the ownership interest of the individual owners. It can be a schedule of owners and their decimal ownership share in revenues of a well's production derived from the sale of oil and gas.

The Division of Interest (DOI) as it also is sometimes referred to, is payments/records for a property or tract within a property that you or your entity is listed as an interest owner.

A Division Order sets out:

  • Property Name
  • Legal description
  • Owner's name and address
  • Owner's decimal interest for said property
  • Owner's Interest Type for said property

It will sometimes provide covenants and provisions relative to the sale of oil or gas and/or distribution of proceeds. If there are title issues some will outline what is needed to release funds or what they call "suspense of funds".

NADOA (National Association of Division Order Analysts) outlines two types of Division Orders

Basic Division Order: Issued to the individual interest owner setting out his interest as per lease and other documents available. It can be:

  • Company In-House Form
  • NADOA Model Form
  • Texas Statutory Form

Indemnifying Division Order: Issued to a party who receives proceeds on behalf of another party(s) and then further distributes those proceeds.

2My funds are suspended what do I do?

Call us. There are a multitude of reasons why your proceeds are being held and not paid. Title issues as simple an erroneous legal description or complex matters that involve trust document requirements and lost heirs. Some issues may not be connected to you or your property directly. Price variances or misunderstood lease terms and operating agreements also play a factor.

Occasionally, payments are held due to matters which create uncertainty as to ownership, such as a notice of death, change of address, transfer of property, assignment of interest or legal dispute. Payments due are accumulated and released when the matter affecting ownership has been resolved.

One of DivisionOrders.com core principles and business format is to work with owners and their operators to get the required documents and have all parties happy and getting paid. Let’s talk about what information you have and still need. We work with you and the operator or your property owner to resolve whatever issues arise.

For a complete understanding and assistance with the terms and individual state required disclosures and pricing please feel free to contact us and we can walk you through your statement and in addition work with your operator to confirm production and all your owner information. We make sure your funds are in pay and all the operator requirements are met.

3Common questions from Operators
  • How do I get the latest data for my project?
  • I am looking for an heir/lost owner?
  • I need a title done?
  • I need a leasing done?
  • I need help with my accounting/follow up?
  • My division order doesn’t match my operating agreement?
  • How do I get suspended funds released?
  • I need Right of Way and surface use agreements?
  • Can you help with permitting and state regulations?
  • I would like to submit an inquiry/information?

Would you like help answering these questions? Contact us today!

4Common questions from Analysts
  • I would like to sign up for your newsletter?
  • I would like to submit helpful information?
  • I have an owner I need to find?
  • I am in need of a document for curative?
  • Can you work with our staff/legal departments?
  • Do you do full accounting and mailing services?
  • We are in need of a process flow organization analysis?
  • My operator would like to be contacted
  • Our clients have questions; can you help with our workload?
  • What resources do you use?

Would you like help answering these questions? Contact us today!

5Common questions from People with clients
  • I need assistance to get my client in pay status?
  • I am unsure of the correct amount of royalties owed?
  • I represent a state agency, municipality, charitable organization?
  • What specific documents do Operators need from my client?
  • I have an investor?
  • I represent a mineral buyer/seller?

Would you like help answering these questions? Contact us today!

Shares