I recently received a “Disbursement Agreement”, rather than a division order, from an operator. It states that “this agreement will serve as a division order”, and it appears to contain generally the same things that a typical division order would contain.
Have any of you ever received one of these “Disbursement Agreements”? This is in Texas.
Read the document carefully to be sure it does not alter or amend your lease in any way. How are the terms different from the statute? You can also add a statement that you are only signing to confirm the DOI and nothing in the document alters, amends or overrides your lease.
I have to say that in 43 years of oil and gas law practice, I have not heard of a “disbursement agreement”. However, it may be another name for a division order. You may want to compare it to the provisions of a division order that are allowed by the Texas Natural Resources Code, which you can access here: Texas Natural Resources Code § 91.402 | FindLaw. As someone has already said, it is essential that the document state that it in no way alters or amends your oil and gas lease.
If the minerals are produced in Oklahoma you only need to provide your tax information through a W-9 and an address where you want payments sent.
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