Meaning of "Revenue Deck" and its use by other oil companies

[jdub]

Is a “Revenue Deck” the compilation of the various revenue interest amounts of all owners with an interest in a particular least?

In Texas (or anywhere for that matter) if Oil Company A buys Oil Company B’s interest in a producing lease is it common (and allowed) for Company A to simply use the revenue interest figures shown on Company B’s “Revenue Deck” as a basis for Company A’s revenue distribution and, if Company A drills a new producing well on that lease, use it in it’s preparation of any new Division Orders it might issue?

Does Company A use this approach simply to avoid the expense of having an attorney prepare a new Division Order Title opinion?

Is it common for Revenue Decks to be passed from oil company to oil company to oil company … on down the line, and relied upon as being correct each time the Deck is passed on to a new oil company?

[Steve_Durrett]

The revenue deck will generally be passed along, but so will the Division Order Title opinions that back them up. During the acquisition process, the Buyer will verify title as to the interests being acquired, but won’t typically review the rest of the deck, unless someone mounts a formal challenge.