Division Orders

Oklahoma Mineral Rights Garvin County, OK
1

If they are drilling a series of wells in a section under one lease, do you get a division order for each well or only the first one? I know this sounds like a stupid question but with the way they are drilling now it is simply different than it use to be. Thanks, Val Carter

2

You should expect one per well.

3

Thanks, Val

4

Multi-unit horizontal wells share production based on the percentage of producing lateral in the well in each unit. So the first well may share the production 50/50, and the second well may share the production 43/57. I don't know how they will show the split between the units on your division orders, but if the numbers are substantially different, that may be the reason.

5

The possible exception to this answer is that if you are held in an old unit, you may not get a Division Order at all on new horizontals because they will simply use the unit royalty interest to assign your royalty.