Received a division order today. Wondering what that means for me and what I should be looking for?
If you received a division order, then it means they just drilled a well on your acreage and they want to pay you. You need to doublecheck the royalty interest to make sure it matches your net acreage and royalty interest %. Friend me if you need help.
Jen- Take a look at the powerpoint "OK DIVISION ORDER PRESENTATION" which was a part of the OK-NARO convention in May. Use this link http://www.naro-us.org/ , scroll down to the Oklahoma Chapter. Go down to the OK-NARO Chapter Newsletter - Of Interest segment. Too bad the audio portion (and the audience questions) is not available, but some of us who were in attendance may be able to answer any questions.
Note that the Model Division Order Form used in the presentation has been revised. A downloadable form is just a couple of items above in the Of Interest column. You might also find the Newsletters of interest.
Just a personal note, I like to specify $25 or annually in the DO. All wells eventually become marginal - hopefully it will be a long time for your well. Be sure to keep a copy of the DO you submit and a copy of the company supplied DO for your files. The segment I am referring to follows.
Payor may accrue proceeds until the total amount equals $ , or pay , whichever occurs first, or as required by applicable state statutes.
Come back with any questions.
I’m home now and was looking at my papers and am confused by the division of interest which says 0.0002934. I own 1.666 acres. What does this mean?
Your royalty interest is part of a formula that includes your net acres, the spacing acres and your royalty rate (and the percentage of the perforations in your section if a multi-section well.)
net acres/spacing acres x royalty rate x % of well perfed in your section. Which section, township and range are you in? I am guessing from the rate, you are part of a multi-section well.
Look carefully on the DO. It should have the percentage that is assigned to your section such as 48%, etc.
I am staring at the division order as I type and there is no place that I see a percentage, just an owner #, a property # and a space marked “division of interest” which is the 0.0002934. I am in section 13 7N 10E the well is Clara. Scared to sign something w/o understanding if it is correct.
Jen, what is the name of your well? I will look it up and get back to you.
Clara. Thank you Wesley!
Nevermind, I found what I was looking for. It is the Clara 1-13/24H. This link
http://imaging.occeweb.com/AP/Orders/occ5199705.pdf shows the planned allocation to be 77.25% for section 13. They are required to file the achieved path of the wellbore, but that will be later. I don't believe they have filed the Completion Report yet. Hope this helps.
Wesley, is there a way to know if it is correct? I mean about the percentage? Thank you so much for all of your help
Jen, what is your royalty rate? 3/16ths? 1/8th, 1/5th?
http://imaging.occeweb.com/OG/Well%20Records/1DD36670.pdf commingled Mississippian and Woodford
My royalty rate is 3/16
Also, would there be any reason my family members have not received this?
I get 1.6667/640 x .1875 x .7725= .0003772
so.... either the acres are wrong or the percent assigned to the well is different. Look on the DO, usually in really small print, there is a breakout of the percentage for each section. If it isn't there, then call the division order analyst listed at the top of the DO (if it is there) and ask them how they got your percentage.
If your other family members have not gotten theirs, they need to start fussing. Something may be wrong with the DO title opinion.
I don’t see the break down percentage so I decided to upload what I received.
File 1048-image.jpg (258 KB)
Time to call them and find out how they got their numbers. Have your property number and owner number ready when you call them. Ask them what acreage they have for you, what the percent assigned to 13 is (77.25% or what?). There may be some confusion on the acres. Get everything you have on the property at your fingertips. Also, you don't have to go with the $100. You can go with $25.