Division Order

If you have received a Division Order from BBX Operating, your interest has been included in a producing unit.  From the date of first production, we are allowed 90 days to begin payment on the royalties, and during that time BBX will issue a State of Texas approved Division Order form.  A Division Order allows BBX to inform the royalty owner of their interest in the unit, provide the opportunity to update name, address or owner, and also allow the owner to ask any questions about their interest.  The following are helpful explanations of BBX Operating’s Division Order form.

Property:  The name of the unit followed by the most current well number.  Most of the units operated by BBX are multi-well units, and the Division Order will specify that well by denoting 1H, 2H or 3H for Horizontal wells or 1 RE or 2 RE for Re-Entry wells.

Location Number:  This the four digit number we use to denote each well. The location number shows up on the remittance advice on revenue checks along with the name of the well.

Owner Name and Address:  Please approve your name and address and make any necessary changes directly on the Division Order.  Should you need to change your address at a later date, please send an email to AddressChange@bbxllc.com or a FAX to (512) 263-3546.  Be sure to include your name spelled correctly, owner ID, the previous address, the new address and the date it changed.  Also include your phone number in case we need to contact you.  

Alternately, you can fill out our Address Change Form and mail it to:
                BBX Operating, LLC
                ATTN: Address Change
                3698 RR 620 S, Ste 113
                Austin, TX 78738

Owner ID:  This number is a unique combination of one letter and four numbers created by BBX in order to help quickly identify all royalty owners.  Please have your Owner ID available if you call and make sure to include it on all correspondence to expedite changes. 

Owner Division of Interest:  This nine digit number is carefully calculated and represents your interest in the unit.  We use an industry-standard calculation format found below:

Mineral Interest or Royalty Rate is: Mineral Interest x (Total Tract Size in Acres / Total Unit Size in Acres) = Owner Division of Interest

–        Mineral Interest:  The amount of minerals you own, usually expressed in faction form.

–        Royalty Rate:  The percentage of total production from which all Royalty Owners are paid.  This percentage is agreed to in your lease form.

–        Total Tract Size in Acres:  Each unit is made up of multiple tracts, and an owner’s interest maybe be in one or more tracts.

–        Total Unit Size in Acres:  The combination of all the tracts in the unit.  The unit size is listed on the Division Order.

Type of Interest:  This denotes whether your interest is a Working Interest, a Royalty Interest or a Non-Participating Royalty Interest.

Description:  Lists the total unit size, the largest contributing survey and survey number and the county and state in which the unit is located.

Indemnity Clause:  In the event of a dispute between the royalty owner and any 3rd party regarding royalty interest, BBX is not responsible for any funds paid

Dispute-Witholding of Funds:Per Section 91.402(b) and (f) of the Texas Natural Resources Code, payments can be suspended without interest (provided the lease does not require otherwise) if:

  • A dispute concerning title exists that would affect distribution of payments
  • A reasonable doubt exists that the payee has sold or authorized the sale of its share of the oil or gas to the purchaser
  • A reasonable doubt exists that the payee has clear title to the interest in the proceeds of production
  • A title opinion requirement placing the title, identity, or whereabouts of the payee at issue remains unsatisfied after a reasonable request for curative has been made.
  • Payments are aggregated as provided by statute

Signing and Returning Your Division Order:

In order to be placed in pay status an owner must sign a Division Order in the presence of two witnesses, who should sign opposite his or her name in the spaces provided.  One must also verify and/or correct their address, if necessary, and provide their Tax Identification Number or Social Security Number for tax purposes.  They must return one fully executed copy of the Division Order to the Land Department at BBX Operating.  An IRS Form W-9 will also be included and must be completed and returned with the executed Division Order.

Questions about executing a Division Order can be addressed to DivisionOrder@bbxllc.com or to 512.263.9212 x300.