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Oil/Gas/Division Order and Incorrect / Lost Decimal


In 1999, I inherited a 1/3 royalty interest of .01093750 or .00364583 in producing properties in Creek County, OK.

I discovered that the oil company was not paying but the property was producing.  On contact they needed all the legal papers which were provided.  

When the DO came it was for an RI of .00243050000 not
.00364503, a difference of .001215263.  The reason for the lower amount is that in 1992 a DO for .007291700 was signed in error prior to the inheritance.

The question is does the royalty owner forfeit the difference?
And who is receiving the difference?

To my knowledge while it is always best to thoroughly read and understand everything you sign; you shouldn't be forced to forfeit the difference so long as the interest is still all legitimately yours. This may be something you want to mention to a landman or attorney familiar with real estate to be sure.

The difference is likely being paid to the operator at present but it is possible that it is either sitting in a generic suspense account or being paid to another owner or owners.  

Is this old pre inheritance division order with a purchaser or operator? Go back to the operator/purchaser with the oldest documents you have that show the correct decimal that you feel you should be entitled to. It may take some accounting to get straightened out - especially if funds have been paid to other parties. Most operators/purchasers are indemnified. They may need to go after third parties for funds mispaid to them before repaying them to you. They may opt to withhold payments on fututre production of other leases to them - supposing there is anticipated timely recuperative production to offset the negatives. There are a lot of possibilities but if you are still legally entitled to the interest you should be able to straighten this all out.

At a minimum I would think you should be able to get things squared away moving forward. I always suggest check and for information on the location of the various parish / county clerk's offices and to see if any state in which you have lived has money in your name.

Forgive the lapse in replying. I hope this helps and doesn't confuse. Please send follow ups if you think that may help.  


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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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