Should you sign an Oklahoma Division Order that has the following language:
“This Division Order hereby ratifies the Oil and Gas Lease to which the Operator is successor in title, however, it in no other way amends such Oil and Gas Leases or other operating agreements between the undersigned and the lessee, operator, or their successors in title.”
All other language in the Division Order seems standard.
In Oklahoma you can refuse to sign a division order and the company still has to pay you. Some don’t like to confront operators with the caselaw and statutory law.
I like to provide operators with the bare minimum that they need, W9, my address and a letter telling them to pay.
I know that some believe that not returning a DO can lead to headaches. It comes down to what kinds of problems are you willing to live with.
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I’ve just never seen one that says the Division Order ratifies the Oil & Gas Lease. I was wondering if that’s something to stay away from or if it’s all the same difference. There’s really nothing else that seems questionable in the Division Order.
In Texas this language could result in reviving a lease which had previously expired under its terms. It is not the same as agreeing that the royalty decimal is accurate. So I would cross through such language and initial the cross-out. Oklahoma law might be different and an attorney can advise you.
If you are a member of the National Association of Royalty Owners (NARO), you can access an excellent webinar given on this topic this year by attorneys Reagan Bradford and Ryan Wilson. I recommend it. If you are not a member of NARO, I would highly recommend you join. They have lots of educational information for royalty owners.
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