# Division Order: What It Is and How to Verify Your Decimal
> **Breadcrumb:** Home › Oil & Gas Encyclopedia › Division Order

> A division order is a document from the operator confirming each owner's decimal interest in a well's production and directing how proceeds are paid. What a division order is (and is not), how the decimal is computed, the language to watch before signing, and how it differs from a transfer order.

**URL:** https://www.buckheadenergy.com/division-orders
**Source:** Buckhead Energy (https://www.buckheadenergy.com/)
**Generated:** 2026-08-16 (heuristic; server-side extraction)

## Answer
A division order is a document an oil and gas operator sends to each owner in a producing well that states the owner's decimal interest — their exact fractional share of the well's revenue — and directs how and to whom the proceeds are paid. It is an instruction for dividing and disbursing production revenue, not a lease and not a conveyance of the minerals. Frequently asked questions What is a division order in oil and gas? It is a document the operator sends after a well begins producing that confirms your decimal interest — your exact share of the well's revenue — along with your identity and payment address, and directs how proceeds are paid. It is a payment instruction, not a lease and not a sale of your minerals. Do I have to sign a division order to get paid? Usually, practically, yes — most operators condition first payment on a signed division order, and some states expressly permit them to require one. Refusing to sign a correct one mainly just delays your own checks. The exception is a division order whose decimal or language is wrong, which you should question before signing. Can a division order change my lease or royalty rate? No. A division order cannot legally amend a lease, and courts have generally held the lease controls where the two conflict. But read the form: strike or question any clause that purports to add deduction rights, alter royalty terms, or release claims rather than simply directing payment. How do I check if my division order decimal is correct? Compute it: net mineral acres in the unit divided by total unit acres, times your lease royalty rate (and, for a multi-unit horizontal well, times your section's share of the perforations). If your figure differs from the operator's, ask their division order desk for the title calculation behind theirs before signing. What is the difference between a division order and a transfer order? A division order confirms and directs payment on an existing ownership interest. A transfer order changes who the owner of record is — moving an interest from a deceased owner to an heir, or from a seller to a buyer, and releasing suspended funds to the new owner. Producing owners deal with division orders; heirs and parties to a sale deal with transfer orders.

## Page Outline
- Division Orders in Oil and Gas
  - What a division order is
  - What a division order is NOT
  - How your decimal interest is calculated
  - Should you sign a division order?
  - Division order vs. transfer order
  - Related reading
  - Frequently asked questions
  - Ready to Sell Your Mineral Rights?

## Related Pages
- [Should I Sign This Division Order?](https://www.buckheadenergy.com/resources/division-order-should-i-sign)
- [Verify Your Decimal (Royalty Calculator)](https://www.buckheadenergy.com/royalty-calculator)
- [How to Read a Royalty Statement](https://www.buckheadenergy.com/reading-royalty-statement)
- [Oil & Gas Encyclopedia — all terms](https://www.buckheadenergy.com/learn)

## About Buckhead Energy
Buckhead Energy is a direct buyer of oil & gas mineral rights and royalty interests across 33 U.S. states. We provide free written offers within 24-48 hours, with closings in 30-45 days. Family-owned and operated since 2007, A+ BBB rated.

**Sell mineral rights:** https://www.buckheadenergy.com/sell
**Operator directory:** https://www.buckheadenergy.com/operators