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Division Orders: What You Should Know

Division Order — When Will My Division Order Be Reversed? The division order is the only document that can prove the exact location at which you have an interest, and it can be challenged on the ground of double. If the claim is challenged, the decision is final and the claim cannot be reassessed. Division Orders—What To Do If I Have a Claim for More Money Than I Paid? It helps to understand the different rules used to determine the amount of division royalties due for minerals. A claim is considered settled until the Division Order declares a settlement amount. If a claim is not resolved and is not allowed to be assessed again, the well is declared a non-production well. Division Orders—What To Do if Your Division Order Is Reversed? If a Division Order is reversed and a claimant's claim is allowed to be assessed again, the difference between the initial settlement fee and the reversal fee must be remitted to the operator. If the claimant has received a reversal, the Division Order is considered a denial of payment. Division Orders—How To File a Claim with the Maryland Division of Corporations When a claim is approved for assessment in the Division of Corporations, it can be reassessed at any time until it is permanently declared a nonproduction well. It is possible to file a claim for reassessment of a division order, even while the case is still before a judge.

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FAQ - Division Orders

What is a Division Order?
A Division Order is an instrument which sets forth the proportional ownership in produced hydrocarbons, including crude oil, natural gas, and NGL's. Sometimes the Division Order is referred to as a division of interest. More often than not, a single well or lease will have multiple owners.
What is a Division Order analyst?
Your job as a Division Order Analyst is to determine each owner's share, and distribute checks accordingly. You may work for only one company, keeping detailed records about the people who own the company's equipment and resources.
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