An old topic perhaps, but the landscape seems to be changing.
For many years we had our local bank teller sign as our division order witness or witnesses. Recently, the local bank said they no longer can witness, but can still notarize. Additionally, the newest division order asks for witness address, phone & email, which
is much more than the previous name and signature only.
What are the best and/or common practices for Division Order witnesses? Are these really required? These most recent division orders were from Texas, so the division order is required to get into pay status.
You can have any unrelated person sign the D.O. - e.g. a neighbor, friend, employee. Texas statute has not amended to require this personal information from a witness and I would not ask for anyone to provide this. If you get any push-back from the oil company, simply respond that this is beyond the requirements of Texas Natural Resources Code Sec 91.402 and payment cannot be denied. Make sure that the oil company has not added provisions to its division order form beyond the statutory form. NATURAL RESOURCES CODE CHAPTER 91. PROVISIONS GENERALLY APPLICABLE
My division order that I just received only wants me to sign, date and r return. No witnesses or notary. I just want to know how you knpw that they are paying for the correct interest
Can’t get a good answer from anyone.
@Nancy43, glad to know your division order signing section was straightforward. In the simplest case, the decimal interest is calculated by dividing your leased net mineral acres by the total well leased acres and then multiplying that result by your royalty rate. Even then, finding details on the well acreage can sometimes take some research. If the well is a multi-section horizontal, then the calculation can depend on the state the well is located in, and if the well is part of a pooling, it may also depend on the pooling agreement. It is a hard question to answer without knowing all the details of the specific well.
Usually the operator may be willing to share how your interest was calculated if you are able to communicate with them.
@Nancy43, it is understandable that the oil company division order analysts could be swamped
if there is a lot of new activity. A local landman may be able to help you, although they might ask for some fees. Or you can keep asking questions here, as sometimes the responders on this forum are able to figure these out with surprisingly little information.
Nancy, you need to disclose what State where the property is located. Each State has a slightly different method of allocation of multi tract/section units; however, there is public disclosure of the allocation that requires a little research. With that information you will be able to use your net acreage and royalty to determine the unit NRI.
Rather than get in a legal battle, just go somewhere else and get it witnessed and notarized, even if state law does not require it. Some people just want to be difficult.