I have history of original mineral rights deeds and a number of division orders archived. I have noticed that over time, wells change, operators change, and sections you have mineral rights in become associated with other sections that are geographically adjacent to each other. It is difficult to make a chronological list with some of my past data. Does the percentage of royalty interest ever change over time as well? When a new division order can not match up with past records 100%, what should I do? Do I notify the division order sender, or speak with a landman first? I understand that my percentage reflects the amount of royalty calculated, but I am concerned about the ethics part of it - what happens if you can’t verify the percentage of royalty interest to match past division orders? Should I assume that it could still be accurate even though I can’t verify all the info? (sections that I did not know I had are listed on the division order). What happens if the info doesn’t match? I feel like I may be opening a can of worms here. Thank you for any responses. This is still new to me.
It can get quite complicated to keep up with everything.
The best thing to do is work from oldest to newest and make a chronological list. The royalty or division order interest can change over time depending upon what reservoirs have been drilled and what spacing is for each one. You did not mention what state you are in, so it makes it a bit hard to answer.
If you get a new division order and it does not match previous ones, contact the operator and ask for the division order analyst for your area. Ask them to give you the equation that determines how they got the decimal. The description of your acres is important which will be on your deed or probate documents. The spacing of the well is critical. The type of well is critical as horizontal wells may have much larger spacings than vertical wells. You may not have the other sections that are mentioned on a division order-especially if you are part of a horizontal well.
I never assume the decimal is accurate unless I work through the math. If you give a location, then we can help you better. If you don’t feel comfortable here, then go to the operator and get them to explain it to you.
I greatly appreciate your answer! I do not mind sharing, but I realize I will need to speak to the division analyst. THIS one is for ConocoPhilllips - Reagan County, Texas… Reagan Core 110E 1H… HE & WT RR CO 429 and G RR CO 161… (my records have it listed as Section 21, Block E, Georgetown RR Co. Survey/ A.K. Webster… 640 acres (it took me a long time to match my records to “Reagan Core” as listed on the division order)… all of my records show a .0029297 RI percentage…(3/128th royalty)… this new division order shows .00151249 … taking what you said into consideration, last year I signed a “production sharing agreement” so Conoco could drill longer lateral horizontal wells - perhaps that has something to do with the change in percentages as well. Your answer was very informative! Thanks again!
We have received new Division Orders from Citation for the Lindsay Deese Unit McClain County OK and for the SW Antioch Gibson Sand Unit in Garvin County OK. They have put the entire unit on the Division Order rather than by Section. Is it reasonable to ask them to separate the Division Orders into sections?
Jaynie, The production sharing agreement is the key for the new wells. They have larger spacings and will allocate your percentage according to the document.
Lisa, For those old waterflood units, it is common to do the whole unit on one document. You can call the division order analyst and find out your particular portion. You can also look up the old Unitization agreement online. https://imaging.occ.ok.gov/imaging/OGUnitization.aspx
If you know your section and description, you can usually find it on the old maps and the list of what Tract # you are now. Quite likely you are in the second phase of the waterflood, so they change decimal amounts when they go into that second stage.
Thank you Martha! Yes the decimals have changed and Citation is not easy to get ahold of. I’ll send them another email.
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