Recently received a DO in the mail that I was unsure about due to the length of each clause. I happened to stumble upon the Texas Natural Resource Code and found part 91.402. This is literally verbatim what is on the Division Order. So my question, Is the Texas Natural Resource Code of Oil & Gas a good trusted resource to use? Do the Texas codes & provisions favor one party more than the other (Operator vs. Owner). Meaning do they help protect the owner. I’ve been relying more on the NADOA standardized Division Order which is straight forward and to the point.
Texas enacted the statutory form in part because some operators were sending long detailed DO that amended the lease and then trying to refuse payment of royalties if the mineral owner changed the form. Technically it applies to oil, but is used for gas. Be sure to include the language that your lease is not being altered or amended.
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