Hi James--------appreciate this information. I too am waiting for a D.O. (DIVISION ORDER) so that I can receive Royalties from Trinity. First Sales took place on 12/22/18. Four new wells for Increased density should bring me an attractive Royalty check. All has fallen very quiet.
NEW COMMENT RE MY pending D.O. (Division Order). I have sent several emails to TRINITY dating from April 12 through June 13th '19. Today I received a response from Trinity as follows: “Mrs C., I am the Division Order Analyst working on the DORA wells. I just received the DOTO’s (Division Order Title Opinion) and will be setting the pay docks up. I will also add your request to accounting for the interest. Please let me know if you have any questions and feel free to contact me at any time” UNQUOTE signed: Division Order supervisor Houston, Tx.
NOTE: I am relieved to receive a response to my several emails inquiring about my forthcoming D.O. (DIVISION ORDER). My minerals are S21/07N/10E Hughes County OK…Leta C.
On the general timing of these things…
The statutory time limit to pay is 180 days from first sales. However, I have found that if the first sales date misses the “check cut date”, then you might not get paid at exactly six months. Each company cuts their checks on a certain date, so the payment could slide by a few weeks.
It generally takes about five months to get the division order title opinion back from the attorneys in order for the accounting or division order department to then set up the pay deck. If the wells are multi-section, then it may take a bit longer as there are hundreds of minerals owners in each section.
If there are more than one well in the drilling area, they may have slightly different different decimals as the length of each well may be slightly different and the perforations percent will be slightly different. Keep good records! Save your Division Orders and all paperwork.
That first check you receive will be the largest that you will get as it has multiple months rolled up into one. Do not think that another one will be that big.
It would be a good idea to talk to your accountant about tax planning.
M_Barnes so since my probate was filed in Hughes on 10/06/2017, book 1423 pg. 376, making me the mineral owner of my % in my tract that Trinity is operating in, I should not have to do anything to get my “first” check for past production? Right? I keep hearing about division orders and such. Trinity never sent me anything, nor did they pay my mother, who was listed on the property for decades before it became mine. Nor did I recieve any lease bonus or lease agreement from trinity.
Even if there was no division order for my mother whenever Trinity leased, or me in 2017, our share (my share) should be in a escrow fund somewhere, right? Why do I have to do anything, when my ownership was established in Hughes on 10/06/2017 by the filing on my mother’s probate? Or do I have to do anything?
You need to contact Trinity by certified return receipt letter and keep a copy. They may have not had your title information in their title opinion at the right moment. Mineral owners always have to stay on top of things as the operating companies are not really going to come looking for us in our time frame. Tell Trinity the Section, Township, Range, the Book and Page of filing and ask if they need further information to put you in pay status. If you have a well name, that will also help them.
Message for M Barnes: HELP! Today I received a notification from BARNES LAW Tulsa, OK advising me that TRINITY is seeking an extension from OCC re: S21 and S28 07N/10E Hughes County,OK…line item # 3
as follows: “Movant request an extension of time for the drilling of the unit well under order 681865 for an additional one year effective as of the date of the filing of this motion.”
I don’t understand what is going on as I just received an email from Trinity dated June 17, '19 as follows: “I am the Division Order Analyst working on the DORA wells I just received the DOTO’s and will be setting the pay decks up. I will also add your request to accounting for the interest.” UNQUOTE
M BARNES, this statement flies in the face of the BARNES LAW NOTIFICATION, today, that Trinity is asking for an extension on the drilling of S21/28 claiming, QUOTE: “Movant has been unable to commence drilling of the well.”
Please help me to understand this GLARING contradiction.
Thank you------please hurry and unclutter my confused brain.
Leta C.
MONTANA (Big Sky and Grizzly Bear Country
What is the case number at the top of the notice and I will look it up along with the other related ones. Do not panic. These multiple well cases can take awhile.
Thank you M Barnes for finding me in all this “jumble.” I hope that the only # I see is the right one (upper Right) but it is called CAUSE CD NO. 201801983-T Please let me know if it is the right one…Leta C.
The cause number ending in 1983 relates specifically to the Dora #2-21/28H, which was spud in September of 2018, and the cause number ending in 1985 relates specifically to the Dora #3-21/28H, which was spud the same month. Both of these wells have 1001A’s associated with them, meaning a “spud notice” was filed with the OCC, but neither has a 1002A filed notifying the State of a completed well. Also, a check of the Oklahoma Tax Commission does not show these wells to be in production currently. As Trinity maintains an active drilling program, they typically use what is known as a “spudder rig” to go out ahead of the larger drilling rigs and get a portion of the well in the shallow, vertical section drilled to make things easier. This action still requires a 1001A to be filed as a hole has been started, though not necessarily to the point of a producing formation yet.
Trinity also spud the Dora #4-21-28H and the Dora #5-21-28H in August of 2018. The OCC shows both of these wells have completed 1002A’s and filed directional surveys filed in April of 2019, meaning they should be producing. The Oklahoma Tax Commission says that they are.
In short, this is not what I would refer to as a “glaring contradiction.” The division order analyst you spoke to is likely putting together the pay decks for the Dora #4 and Dora #5, while the Dora #2 and Dora #3 may not be actually be drilled in the form of a producing Horizontal wellbore yet.
As for what you do now, my advice is to wait for division orders on the Dora #4 & #5, and continue to follow the story on Dora #2 & #3 to see if they end up getting drilled and completed.
WOW!..M Barnes, are you positive that I shouldn’t enroll in a Geology Program and learn the “stuff” that you so clearly state so that we lay folks can understand. Thank you so much. You have allied my concerns. Ok I shall proceed as you have directed. These minerals belonged to my late daddy. And my late sister–Joyce–passed in 2015, and we considered the minerals our LEGACY to us to continue on. Joyce and I had a PACT that these minerals would never be sold…only leased. No matter the $$$ offer------not for sale. I love your profession. Please do not run away from the forum, i.e., so many of us lay folks count on your expertise…Warm Regards,…Leta C. MONTANA (Big Sky and Grizzly Bear Country). I will be lurking around, and likely holler for your help again.
James H--------I apologize-------surely I do. I did ‘not’ see your name at first. Thank you----thank you for EXPOUNDING in so much specificity. I thought that M Barnes had responded because I was “trying” to find the right case # to answer her question, and misconstrued who had responded…Please accept my apology for the oversight!..Leta C.
James H,
I am back, and re-reading your detailed response. I have a much better understanding now, and relieved that there is ‘no’ likely “glaring contradiction” in my previous assessment. To re-iterate, I shall follow your directive in your last sentence to "follow the story on Dora 2 & 3. If you, perhaps, have any NEW information in the future re DORA 2, 3, 4 & 5 findings I would welcome your expertise and opinion…Leta C. MONTANA (Big Sky & Grizzly Bear Country).
Leta, You keep a watch on the wells from the OCC well records site. Test. When they are done, they will post the completions. (months later).
Also watch the Gross Production site for the active date on them. They probably will take the extra year to get them done. Gross Production
M Barnes and James H…new information today 7-8-'19, from BARNES LAW Tulsa, Ok. notification CAUSE CD NO 201903431-T ORDER # 636326 … I “authority to increase the well density by the drilling of ‘two additional wells’ and designating Applicant or some other party as Operator.” Am I to construe this will mean DORA 6 & 7? I AM BEWILDERED when DORA 2 & 3 are ‘not’ complete yet. To date I have ‘not’ received a D.O. (DIVISION ORDER) for Dora 2, 3, 4, & 5. My Question: What is the rationale for Trinity Operating (USG), LLC to be an APPLICANT for two new additional wells when Trinity hasn’t completed DORA 2 & 3? Thank you for any feedback on this new well density increase…Leta C. MONTANA (Big Sky and Grizzly Bear Country).
This is most likely to get the Dora #2 and #3 drilled. In order to drill multiple wells on one section in Oklahoma, an operator has to apply for “Increased Density” with the Corporation Commission. This is essentially to ask the Commission for permission to drill more than one well in the section. It appears that Trinity applied for and was granted an Increased Density order in March of 2018 for 4 wells. An increased density order is only good for one year, which would have passed in March or April of this year. As we established earlier, Trinity did drill the Dora #4 and Dora #5 but not the Dora #2 or Dora #3. This filing is very likely to be Trinity re-applying for that increased density to finish out the Dora #2 and Dora #3.
Hi James H…once again, thank you for giving my question your consideration for a response. These “ups and downs” in the oil and gas industry make my head swim a bit, however, had it not been for this forum, and knowledgeable folks like you and M Barnes I would still be in the dark. I simply want to stay informed about my own interest. I want only what I am entitled to monetarily. Please tell me if there is any “foot dragging”------so to speak, politically, by Trinity asking for a year extension on drilling Dora 2 & 3? I have had lucrative offers to buy outright, therefore I can only construe that Trinity knows that plenty hydrocarbons exist below the ground. My minerals are S21/07N/10E…Leta C. MONTANA (
Big Sky and Grizzly Bear Country.
You should be getting paid on the first two child wells as soon as they send out the Division Orders. Back royalties since first sales in the first check. It can be nice to get the other future royalties at a different time in the future. Oil prices may go up (or not), but it spreads out the tax burden a bit. The first two child wells will give you a feel for the next two and help with budget planning. Congratulations!
I understand you want what is owed to you. As you alluded to above, the Division Order analyst at Trinity assured you she is getting the pay decks together for the Dora #4 and Dora #5. You will eventually get paid. State law says so.
As to the Dora #2 and Dora #3, it is important to keep in mind context. Your minerals are in an area that produces natural gas. Natural gas prices have been collapsing as we currently have a glut in the United States and very little export capacity to sell it anywhere else. As a mineral owner, it is your right (or your predecessor in title’s right) to lease minerals for development. Trinity has developed your minerals and your lease is now held-by-production until all of the wells on your property stop producing. The ball is in Trinity’s court as to how fast they get around to drilling the Dora #2 and Dora #3. As to foot-dragging, if these were my minerals I would prefer Trinity not drill those remaining two locations until prices recover.
If you have offers to purchase your minerals outright that you deem lucrative, then by all means sell them. If you don’t need the money, it might be worth waiting. You have 2 wells about to start paying you monthly checks, and 2 more apparently in-process. All that is required now is patience.
Thank you so much. You have allied my concerns. Ok I shall proceed as you have directed. These minerals belonged to my late daddy. And my late sister–Joyce–passed in 2015, and we considered the minerals our LEGACY to us to continue on. Joyce and I had a PACT that these minerals would never be sold…only leased. No matter the $$$ offer------not for sale. I love your profession. Please do not run away from the forum, i.e., so many of us lay folks count on your expertise…Warm Regards,…Leta C. MONTANA (Big Sky and Grizzly Bear Country). I will be lurking around, and likely holler for your help again.