I find that EOG’s Livingston 13-24 has been active and producing since Aug 2018. Even if we are HBP shouldn’t we have received a DO by now. Will EOG need to pay interest? Also, Roan’s 24-13-9-5 also has been active and producing since Aug. 2018. Shouldn’t we have received a DO by now? If we are HBP should we receive a DO?
Usually a yes on both fronts. Time to request interest payments. Both Roan and EOG are running behind on paperwork. I send the request by certified mail return receipt.
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Royce and Martha, I talked to the Land Man at EOG on Friday, he had no clue when the DO would be issued. He couldn’t even really talk to me since my name (or my trust or SSN #) had not been entered yet. So yes, they are WAY behind.
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Thank you, Martha. Will EOG and Roan pay me directly according to my lease with the company that has me HBP?
You will be paid by the operator of the well, in accordance with the terms of your lease.
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Can a DO change the terms of the Lease? For example, can a DO indicate certain charges to prepare the oil and gas? My lease says no deductions with no clause saying “except for”.
DO’s can not change the terms of the lease.
If a company uses their own form, the DO can change the terms of the lease. I have seen some bad ones which I would not sign. If you use the NADOA form or the company uses the NADOA form, it specifically says that it does not change any terms of the lease.
(NADOA-National Association of Division Order Analysts). You can get the most recent version from NARO.
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Thank you, Todd. My DO says The following provisions shall apply to each interest owner who executes this Agreement. It goes on to say “The purchaser shall compute quantity and make corrections for gravity and temperature and make deducts for impurities in the oil.”
My lease says no deducts.
Personally, I would not sign that DO as it would make deductions when your lease says not to. You can use the NADOA form instead. And watch your check stubs like a hawk.
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Thank you, Martha. I will try to get a copy of the NARO DO.
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Royce, this link should get you to the NADOA DO
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Thanks Don. Also, many companies put a $100 minimum on their DO before they pay you. I usually change mine to $25 so that I can get more regular payments and keep an eye on trends. Easier to see if a check “goes missing” which has happened to us before.
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I keep an Excel spreadsheet to track the checks for each company. A long time ago, we had checks stolen at the post office when a guy would see corners of checks peeking out of a PO box. He would take them and cash them for himself. That was a mess.
About a year ago, we missed a bunch of June checks. I was wondering when they would show up, so I was going to write all the companies for a reissue before the end of the year so they would match the 1099s. . Turns out they were in a mail truck that was parked in Kansas until the Christmas season. The boxes at the back of the truck were empty, but not the rest of the truck. They showed up in December in the Christmas mail rush. Funny things happen.
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Martha, I too am creating an excel spreadsheet to track checks. Can you suggest some things that I should be tracking (column headers)? Any help would be appreciated.
Thank you, Don! Just what I needed.
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Another couple of questions before I mail the DO off. Should I attach a note to the NADOA DO saying I want to be paid according to my lease agreement without any deductions, as per lease agreement? Or will the NADOA DO speak for itself? Thanks!
Attach a copy of your lease with pertinent information highlighted.
I also received a DO recently with Deductions included in the DO like you have received. I crossed thru those items that discussed deductions. Also, I included a letter detailing my Exhibit A clause for no deductions, and included a copy of the lease. I also pointed out in the letter that my lease (Exhibit A ) has a clause that says the DO can not modify the terms in addition to not allowing deductions. .
I had previously called the company about the concern I had with the DO and they seemed to understand and asked me to response with a letter.
We will see how this turns out – I have received the first check ( with deductions ) about a week later, and the next one is due in a week or so from now. I also send a letter to the Accounting Department pointing out my lease clauses ( no deductions) and asking for interest on this first payment which had two months late amounts in addition to reimbursement for the deductions… this may be a long drawn out deal – hope not
Technically Oklahoma does not require a division order. Some owners refuse to return anything except a W-9 and direct deposit form.
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