We are inquiring to know if anyone has received Division Orders from Chevron on S-15-T-23s R-28e in Eddy County, New Mexico yet?
Hello Lee, Are you inquiring about the Chevron Wells completed in 2020 in Sections 15 and 22 ? CB NE 15 22 002 #001H CB NE 15 22 002 #002H CB NE 15 22 002 #003H
These Division order were sent out at the beginning of September or end of August and payed out the first check at the end of September. This was for May, June, July, August 2020 production.
It seems that Chevron started paying on the new horizontal wells and turned around and transferred operatorship of the 30 year old Vertical wells they owned in Sections 10, 15, and 22 to BTA Oil producers.
Hi CMC15. Thank you for responding. Yes, the 3 H Wells in Sections 15 and 22 just as you have stated are the ones we are inquiring about whether the Division Order have been sent. We haven’t heard anything from Chevron but I called them yesterday and talked with the Royalties and Disbursement office and the a man there who was going to email a Land man in Eddy County who handles Division Orders for Chevron there.
As mentioned we did receive the Division Order from BTA Oil Producers for the Seibert 1 vertical well on Section 15 T-23s R-28E. Thank you for sharing about the history of how Ram energy increased production and the possibilities of future production on older wells.
In trying to understand the Division Orders, will we receive one for each of the three well in the eastern half of Section 15 and the eastern half 22??
Is it appropriate to correspond by phone with you. I have so many questions in trying to understand what you and others are so versed in regarding mineral rights and procedures with Oil Companies. It is nice to be able to visit with someone who has mineral interest in the same pool.
Hi CMC15, this is Lee Evans again. We too have just recently received Division Orders from Chevron. It is a bit confusing when we look at EXHIBIT A. This chart shows “DOI SUFFIX” for 1, 2, 3. On each of these it gives the Tract Interest, Type of Interest, Product Code, Unit Interest. We aren’t sure if this is a Division Order for the 3 Horizontal Wells, or if it is for one Well which may have 3 parts to it?
Also under each of these it gives Property Name, Property Tract Description, County or Parish and State.
The problem is on #3 it gives all of the description except for the “Property Tract Description” which is NE/4 NE/4 Section 15-23S-28E. Why would Chevron put the Property Tract Description on the other two but not this one?
We are waiting to hear from Chevron for explanation on these questions before we sign the Division Order.
If anyone has a comment on whether we should sign it as it is or not we would appreciate your input with regard to these questions as this is all new to us.
Thanks, Lee
Hi Lee,
Sorry I haven’t been on here in a while to see your question.
I only had two DOI suffix codes either 1 or 2 for each well.
There should be two pages of exhibit A on your division order. The DOI suffix - correlates with the type of product, in other words OIL, Condensates, or Gas and Natural Gas Liquids. The percentages are the same for each type of product.
Each Unique Property Code - is for a different well. There are two entries per property code, 1 for the DOI suffux 1 - Oil and Condensates and the other DOI suffix 2 for Gas, NGLs.
This is why there were 2 pages in exhibit A with 6 entries. 2 entries per well.
You can match the Property Code with the well name in the description.
My Division orders had property tract descriptions on all the entries. It sounds like yours a bit different then mine. Mine were sent in Sept 2020, and show E/2 of section 15 and E/2 of section 22. In other words the whole pool.
Hi CMC15, Thank you for responding.
We have just now straightened out with Chevron that they were avoiding the fact that we have three horizontal well on this property. They had sent the information for the Siebert Vertical Well and told us that BTA Oil Producers had purchased it from them and to get in touch with them, which we knew and it was over a month ago we had already signed the Division Order for that well with BTA. We feel like they have been stalling with us.
Two weeks ago they finally sent the Division Order for the 3 horizontal Wells in the whole pool and said we should start receiving payment on the 28th of this month.
May I ask, how long you have been receiving payments from them? Thanks, Lee and Patricia
Hi Lee,
Good to see you got everything straightened out with Chevron.
I Have been receiving royalties since September 2020 on the new horizontals. At that time they caught up/paid out from initial production in May 2020 thru August 2020.
They usually run one month behind on the oil ( Condensate ) and you will notice Natural Gas and Natural Gas Liquids will be a little further behind.
They usually pay by the 28th.
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