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Oil/Gas/Working Interest vs Entitlement Interest


Could you give a clear distinction on the above two terms. Which is a true number for a company's production.

I have never heard of an entitlement interest so you may want to address another here about that aspect. A working interest, however, is an interest which carries a financial responsibility unlike a royalty or override. Through not a part of my everyday workflow it is my understanding that anyone with a working interest will be responsible for joint interest billings or JIBs which cover well expenses. I believe they also have some say as to what happens with re-works of wells, etc. Their no votes can be outvoted and they can be placed in a non-consent status on a well. This means that the non consent owner is not eligible to receive any payments for production to an agreed upon level by those who did participate for example.  


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Jason J. Alexander


I can answer oil and gas division order questions. I am most knowledgeable about as the purchaser side of the oil and condensate production. I can offer suggestions regarding probate and basic transfers of working, override, and royalty interests. DISCLAIMER: I am not a lawyer. I have seem and know what my company for instance accepts pertaining to these matters. Being from the purchasing end (and not the operator side) I do not have much experience with calculations or valuing property or minerals. I do not deal with acquisitions, exploration, or development of leases either.


I am a Division Order Analyst with a crude oil purchaser. I have worked in the division order and customer relations departments for the past 9 with a first purchaser. My company purchases and transports oil for operators and we make revenue distributions on their behalf. I analyze division order title opinions, prior purchaser pay sheets, probate, and other conveyances related to the set up and modification of pay decks (divisions of interest) in leases (wells) of oil around the county. I have been involved in the set-up of our contract pay leases in conjunction with our marketing and regulatory departments.

HADOA: Member, 2013-2014

HADOA: March, 2014 Seminar The Land Department: Division Order Analyst Training Course, 2011 & 2007 NADOA 2010 Conference Land Focus: Fundamentals of Leases & Title Ownership, 2006 Northwestern University, BS Communications

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