I am puzzled by how the decimal fractions in division orders find their way into the public record.
I understand how the decimal numbers are calculated. Or at least I think I do. The operator first looks at royalty rate stated in the lease. However, the lease does not say how much of the mineral interest the lessor actually owns (the royalty clause is worded on the assumption that the lessor owns everything, and a later clause provides that if the lessor does not own the entire interest, the royalty payments will be reduced proportionately).
To determine the lessor’s actual fractional mineral interest, the operator (or landman or attorney) studies the public real estate records to determine each lessor’s share. Multiplying that interest fraction by the royalty rate generates the decimal fraction (by the way, what is the proper label for that number: “royalty percent” or “royalty percentage” or “royalty interest” or what?).
So far, so good?
My understanding is that division orders are not filed in the public record, but nonetheless the decimal numbers do pop up in various public places. For example, property tax assessors apparently use them to figure out how much to bill each of the separate lessors.
What stumps me is how the numbers get into the public record. Can someone please explain how that happens?