Division Order James Garner 36-25-9N-5W

General Mineral Rights Discussion
1

I have received a Division Order from Camino Resources, LLC. It begins: This agreement does not amend any Lease or operating agreement between the interest owners and the Lessee or Operator or any other contracts for the purchase of oil or gas.

It then states: The following provisions apply to each interest Owner (“Owner”) who executes this agreement.

TERMS OF SALE: The undersigned will be paid in accordance with the division of interest set out below. The Payor shall pay all parties at the price agreed to by the operator for oil, gas and related hydrocarbons to be sold pursuant to this division order. The purchaser shall compute quantity and make corrections for gravity and temperature and make deductions for impurities in the oil. The proceeds for the sale of gas shall be calculated as to the price and quality on the basis of and in the manner provided for in the contract with the purchaser of such product.

My lease has NO DEDUCTIONS. It has no “except for…” in the lease. Can I change the DO so I don’t have to pay marketing costs for my minerals? I have an old 1/8 lease signed years ago and am HBP, but I understand my lease terms should still be valid. How do I handle the DO and still receive my money in a timely manner?

2

Royce,

If you have a copy of the old lease, I would present it to Camino and ask them to amend the DO.

3

Thank you, Texhomex! I will either ask them to amend or send them a NADOA DO.

4

If this is in Oklahoma, our state does not require division orders. Some owners are adamant about not signing them for the concerns you outlined above. Provide your tax information with a W-9.

5

Yes, it is in Grady County, OK. I have been advised to send in a DO from the NADOA… That should work, shouldn’t it? Thanks!