I own some mineral rights on some acreage for the Westhoff Units. They told us in september that the division orders would be issued in mid-October with checks following. We got a division order on the 9th. However, the decimal interests were incorrect. We received another division order yesterday (on the 23rd) and the decimal interest was still incorrect. Wondering if anyone else has had the same issue with division orders and why did it take 2 weeks to receive the new division order?
You should be able to call their office and ask for the calculations used which will tell you whether the difference is in your acerage or in your percent of royalties. it will look something like this:
Mineral Interest: 0.50
Lease Royalty: 0.23
0.50 x 0.23 = 0.115
Gross Acres in Unit: 41.68
Total Acres in Unit: 221.02
Tract Factor: 41.68/221.02 = 0.1885802
Net Royalty Interest: 0.115 x 0.18858022 = 0.02168673
P.S. I have still not recevied my DO yet but hope to get them soon. I did hear that there were over 400 mineal owners in this pool and a lot of unidentified heirs hence the delay in sending out the forms but you would think they would have at least grouped them by owner....
So are you talking about town lots under Westhoff?
Jennifer L said:
You should be able to call their office and ask for the calculations used which will tell you whether the difference is in your acerage or in your percent of royalties. it will look something like this:
Mineral Interest: 0.50
Lease Royalty: 0.23
0.50 x 0.23 = 0.115
Gross Acres in Unit: 41.68
Total Acres in Unit: 221.02
Tract Factor: 41.68/221.02 = 0.1885802
Net Royalty Interest: 0.115 x 0.18858022 = 0.02168673
P.S. I have still not recevied my DO yet but hope to get them soon. I did hear that there were over 400 mineal owners in this pool and a lot of unidentified heirs hence the delay in sending out the forms but you would think they would have at least grouped them by owner....
Yeah I heard there were a lot of mineral owners also and handful who didn't even know they owned acreage. So the delay makes sense. The property we own are not town lots but are just half a mile north of Westhoff, where the pad sites are located. Has anyone looked at the Certificate of Pooling Authority on the GIS Map Viewer? They also have some of the production listed.
Yes, you can actually pull the production report yourself on the RRC website. It looks like they have it choked back since it is not in production, or at least I hope so because the production level looks low.
Go to the following link:
Select: Oil lease
Lease No: 10559
District: 02
Enter your date range and submit
| Date | OIL (BBL) | Casinghead (MCF) | ||
| Production | Disposition | Production | Disposition | |
| Jun-13 | 865 | 306 | 1,312 | 1,312 |
| Jul-13 | 26,477 | 25,983 | 32,383 | 32,383 |
| Aug-13 | 39,336 | 41,061 | 55,334 | 55,334 |
sorry, I know it is in production what I meant is that since it is currently not being paid out to the mineral owners they may have it choked back. Some of the contracts have a clause about penalties if payments are delayed.
when will penalties for delayed payments be implemented? I assume it varies depending on the contract? Or is it a set number of days?
Evan, that is a good question. I have not encountered this before. First you should check your contract to see if you have a "Royal Payment Due Date" clause then check with your attorney about reviewing your well logs to see if they are beyond the date and pursuing payment.
Be sure to put back some money to pay your Ad Valorem taxes next year!
FYI: Another well request was just submitted for the Westhoff A pool:
| Submitted 11/08/2013 | 773440 | GEOSOUTHERN ENERGY CORPORATION (301287) | WESTHOFF A UNIT | 5H | 02 | DE WITT | Horizontal | New Drill | - | 14000 | Mapping |
That's great! There should be 6 more wells to be drilled apart from the four across the road. Btw I got my first check on the 1st.
I’m waiting on my DO. Glad I checked in with the group.
Looking at the RRC Public GIS Viewer it appears that only 1 leg of Westhoff A is in production, 2 show shut-in and the other 1 reflects permitted. Has anyone heard an update on these? I am STILL waiting on division orders.
Also, did you see where GeoSouthern sold it's lease holdings in Dewitt and Lavaca Counties to Devon Energy.
It's been shown like that for a while.. Nice to see 5h and 6h, though. I read about the lease holdings yesterday. http://phx.corporate-ir.net/phoenix.zhtml?c=67097&p=irol-newsArticle&ID=18786
40&highlight= We weren't sure if that was good or bad.
I was informed that I probably won’t receive my division order until March 2014, which means it would be May before I receive a first royalty check. I responded by supplying the Texas legal statute that they owe me interest for late payment of royalties. Will be interesting to see if the new owner can calculate my overdue royalty payment without lots of post production expenses and then pay me interest I am legally entitled to receive.