Why would the ownership decimal on royalty check stubs not match the ownership decimal on the coordinating division order?
Someone made a mistake. It could be that the royalty check is the first one for a well and they made a payment using an estimate so they would not have to pay interest if they did not pay. They plan on correcting when the final splits from a horizontal well are calculated… The Division Order may be wrong. Get your papers together and figure out what you think it should be and contact the operator quickly by certified return receipt mail and find out why. Happens occasionally.
I have requested copies of all division orders about 10 days ago but so far no response. I know I have not discarded any division orders but thought it wouldn’t hurt to see what they are using. This issue is affecting 95% of our wells. They are also using different payment decimals for different transactions for the same month. One well ha 5 different ownership decimals and 11 different payment decimals over 6 checks.
That is pretty odd. Definitely requires some investigation. What county and state are you in?
Converse County, Wyoming
I know that some of mine have a line for ORRI and some for plain royalty, but they shouldn’t wander around from month to month. My plant products seem to change decimals from month to month, so I am doing the same kind of detective work as they should be stable.
These are all plain royalties, no ORRI. There are other irregularities, including over the last 5 months they have been subtracting extra severance tax back to 2013. No good answers from the producer, seldom a response when they say they will call back. I talked to some residents of the area but they were not aware of any other stories like this.