Recently, I received a Division Order for a small tract in Cherokee County and I cannot make the math work. Could someone advise what is recommended to confirm the division order prior to signing. Would welcome a recommendation for a title professional, independent landman or attorney familiar with the area and O&G leases.
Many thanks!
Cauzy,
Personal message sent.
Clint Liles
The equation is as follows: net acres/spacing acres x royalty x % perforations in your section. If the well is completely within one section, then the last term is 1.00. If it is a multi unit well, then the OCC will determine the percentages. You don’t need a professional if you can figure out the terms of the equation. I can help you with the spacing if you tell me which section, township and range and well you are talking about.
These folks are in Texas not Oklahoma and no indication it’s a proration unit, right?
It should say on it if it is a proration. Call the Division Order Analyst. You can also look at the Texas RR Commission to see a plat of the well and see how long it is if horizontal or if it is vertical. Clint Liles is a master at using their website.