Search Results for: ROYALTY INTEREST

division order

glossary /

division order. Oil & gas. A contract for the sale of oil or gas, specifying how the payments are to be distributed. • Royalty owners enter into division orders to sell minerals and to instruct how payments are to be made under a mineral lease. Working-interest owners also commonly sign division orders to instruct purchasers […]

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apportionment rule

glossary /

apportionment rule. Oil & gas. The minority doctrine that royalties accrued under an oil-and-gas lease on land that is subdivided during the lease term must be shared by the landowners in proportion to their interests in the land. • For example, if Grey granted a lease to Simms, then sold one-half of the land to

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