Peveto & Associates, Inc. provides services to prepare Division Orders and send investing revenue from oil and gas production.
Division Orders
A Division Order is a written contract that directs the proceeds from the sale of oil and gas. A single well or lease may have multiple owners, all owning an interest in a single well. Interest owners can be working interest owners, overriding royalty interest owners, non-participating royalty interest owners, and royalty owners.
All instruments, such as farm-out agreements, overriding royalty assignments, working interest assignments, etc., that were created after the oil and gas lease will need to be included along with the final drill site title opinion together with the mineral ownership of any tracts pooled with the drill site tract.
The Division order determines who gets paid, and the amount of payment based on the oil or gas production. A Division Order is generally received by a mineral rights owner through the mail within three to four months after well completion.