Section 91.402(h) of the Texas Natural Resources Code, the “division order statute,” provides that the execution of a division order … shall not change or relieve the lessee’s specific, expressed or implied obligations under an oil and gas lease …. Section 91.402(g) of the division order statute provides that Division…
So you have received a division order, and it says that ABC Oil Company will pay you for a .015625 royalty interest in the Barn Burner Unit #1 Well. How do you know whether the .015625 interest is correct? I’ve written previously about the purpose and legal effect of division…
Other than the oil and gas lease itself, the division order is undoubtedly the most common legal instrument mineral owners are asked to sign. Mineral owners should know the purpose of a division order, what rights and obligations it imposes on them, and the division order’s relation to the oil…