The Division Order—What Every Mineral Owner Should Know

A division order is a contract between you and the operator (an oil and gas company). Typically, receiving a division order means that the operator is about to drill, or that the operator has already drilled a well and your minerals are producing. Before you sign a division order, remember that it is often intended to protect the operator, not you. It is possible that the division order contains terms and conditions that may waive some of your rights as an Oklahoma royalty and mineral owner.

Here are five facts every mineral and royalty owner should know about a division order:

  • You are not required to sign a division order to be entitled to recovery of royalty payments
  • All that is required to receive your royalty payments in Oklahoma is proof of marketable title
  • Your division order cannot revoke or amend the terms of your oil and gas lease
  • Your division order can waive rights you might otherwise have under Oklahoma law
  • A division order is only required to have four categories of information: 1) your name; 2) your address; 3) your social security number or tax identification number; and 4) your mineral interest