Still trying to understand how to verify decimal interest. I just received another division order after tracking down an operator of a well after they sent more funds to unclaimed property just this year.
I was told by several now that as long as my info was filed in the county, Carter, that this would not happen again. But it has.
Anyhow, I have read on here a post from Martha stating that she always sends in her own NADOA form instead of the DO from the company. What exactly is this and how does it work?
I have also seen where Richard has posted that a DO is not required in Oklahoma. I was told by Vitol that I must send the DO back if I want to be in pay status. (Kodiak is the operator, Vitol is the buyer, Iberia does the managing). (?)
My concern is how to verify a decimal interest. Vitol states that they do not have a calculation they just do the transfers. Kodiak does not want to speak at all, but finally got them to listen somewhat and was then told they do not have a calculation either. They received the info from prior company D &S Roring. I can not find anything on this company. It’s all quite frustrating when you are really not sure of how to proceed.
Note: the DO does not state how many acres.
And last question, what is the best way/where do I go to find what wells pertain specifically to my acreage? Specifically, how to know if you should be in pay status or not.
Thank you!
How many net mineral acres (NMA)do you have? How many gross acres are in your section? Not all sections are the same size. What is unit size? All of mine are sectional units (640 +/- a few) in OK, but there may be some smaller units in older shallow fields. Are the well(s) multi-sectional, horizontal wells? If so, what is the percentage of lateral production in your section?
What is your section, township and range and name of the well. if it is an old Carter shallow well, it has probably been through quite few operators. It can get complicated…
Martha, it is 14-2S-3W and this one is for the Phipps well.
John,
I sure wish I could answer all of that!
Jess Phipps in the NW4 of 14-2S-3W? SH NW4 80 ac spacing.
Do you know the exact description of your acreage? Should be on the lease or on the deed. Something like SW4 NW4 14-2S-3W. If not, then what is the decimal that is on the DO and I will try to back it out for you.
The lease states “The South half of the Northwest Quarter (S1/2 NW 1/4)”.
And it contains 80 acres.
And the DO shows decimal interest 0.01171900
for this well.
There are two Phipps wells. Which one is on the division order?
The more important question is are you getting paid on the Continental Seaport 1-14-23XHW well? It also goes across 14. Some discussion on the forum about that one. If so, then Continental has figured out your acreage and royalty in their title search.
Some companies try to change the terms of their lease on the Division Order. It is better (in my opinion) to use the NADOA form which is very short, has only the data needed in order to get paid and is accepted in every state according to NADOA (National Association of Division Order Analysts). It does not allow any changes to the lease. You just transfer the information from the Operator division order to the NADO form. Names, addresses, description of well, decimal amount, etc.
0_NADOA_Division Order Model Blank Form 2017v 2.pdf (78.2 KB)
I will look at the Decimal amount and get back to you. The lease will have the gross acres, not your net acres, so it will take a bit of figuring. Which well is listed on the DO? Does it have an API number?
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Phipps 1 was in the SE4 SE4 NW4 of 14. API 35-019-00242. It was owned by Roy W Roring at one time. Roy sold it to Steve in 1999. Steve Roring sold it to Kodiak in 2018. I think this is the correct one since it is the only one still on production. Lists Vitol as the reporting company. Kodiak is the operator. (Can’t find the 1073 for the Roy to Steve transfer, but it was probably in 1999).
Phipps 2 was in the NW4 SE4 NW4 of 14. API 35-019-04845 Also owned by Roy W Roring at one time. Roy sold it to Steve in 1999. Steve Roring sold it to Kodiak in 2018. (There was another Phipps 2-14, but it was dry and in the SW4 SW4 NE4 back in 1955)
The DO I received on the Seaport has more information than this one.
I really became concerned when neither company could answer anything about this one.
And on the Seaport, I signed it and sent it back without really understanding it. My mistake.
I have learned from this forum though not to do that again.
Yes, I am getting paid on the Seaport. My net acres are 7.5.
The DO is very vague, it only says Phipps. I questioned the woman at Vitol about the Phipps 1 and 2. She had no idea and said to call Kodiak.
The woman at Kodiak was even less helpful and finally said “Phipps is all you need”.
The DO shows property #, property name Phipps, Operator Kodiak, owner # type of interest, decimal interest, and legal section. That’s it.
7.5 was the magic number.
The equation is net acres/actual spacing acres x royalty x % perforations in your section.
7.5/80 X.125 X1.0= 0.01171875 if you go out to eight decimals. .125 is a 1/8th royalty which was very common back when the well was drilled. 1.0 means that 100% of the perforations are in your section since it is a vertical well. Go ahead and sign it, but put it on the NADOA form. You do not need a witness in OK. Keep a copy of the Division Order and put in your files. Send it back by email or by certified mail return receipt so that you have proof that they received it.
Fantastic! Martha, you are amazing and I am so thankful that I found this forum and even more thankful that you are on here helping out people like me! Don’t know what I would do without this!
I have already printed out the form and will certainly do what you suggested.
As for other DOs that I have signed previously, could I now send in one of these forms or is it too late for that since it had already been signed?
And once again, my sincere thanks for all of your help!!
Yuu can send in a new DO any time you wish. I usually change my minimum to $25 from day one because over time wells decrease in volume and royalties. It gets me checks more often and that way I can monitor when one is missing. Be sure and save your check stubs for seven years for IRS purposes.
Great advice! And I will send the others in with this form.
Thank you so much!!
Go to the OCC well records site and look up your section. There is another shallow waterflood super old field, but may still have some production. You might have funds in suspense from one of those operators. Carpenter Morris Deese Unit or S Sholem Alechem Deese Unit. Test
From the link you sent me, I looked up my section and found 8 different Carpenter Morris Deese units, but could not find anything on the names that you mentioned. And of the ones I did find, I can’t seem to find whether they are still producing or not.
When searching my section in OTC searching by legal description, I find only Phipps, Seals, Seaport, and Highline as active. I am now in pay status for all but Highline as far as that goes and don’t believe Highline is in my exact section. (?)
As far as the Deese Units, I printed out all of the docs I found, how do I now verify whether there is still production or not?
I also keep running across JP Ingram wells.
Thank you!
Highline goes north into 11 & 2, so not yours. Just has the surface location in 14.
I did a quick check and none of the others are still online. Harmon Oil Inc. had Carpenter Morris Deese and last production was in May 1996. Linn Mid-Continental Operating had S. Sholem Alechem Deese. Last production was in May 1995. Not sure if Linn is in business anymore. Probably not worth worrying about them if you checked unclaimed funds and didn’t find anything from them.
Thank you for checking all of that!
I am puzzled about one that I came across. It is Carpenter Morris Deese # 9-2 that shows original well as JP Ingram #2. It is showing new operator as C E Harmon Oil but shows transfer date of July 21, 2010. I can’t find much more than that.
Again, many many thanks for all of the help!
The correct way to calculate your acreage is by taking the decimal interest (0.011719) times the gross acreage (80) and then divide by 0.125; which equals 7.50016 net royalty acres.