I have received an Amended Division Order and the only thing showing to be different is on the Special Clauses line and it states “Corrected Allocation Factors”.
Can someone explain to me what that means exactly?
Thank you!
The perforations in the wellbore are allocated to a percentage of each section to the whole. Often times the operator steps forward & pays to prevent having to owe interest on a late payment. Those payments are a good faith payment. Once the operator gets final/official confirmation of the actual percentages, they reissue new DO’s and recalibrate payments accordingly.
Todd_M_Baker,
Thank you once again for your help. I really appreciate your knowledge and explanations! Thank goodness for this forum!
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