Excellent NARO webinar on Division Orders for Oklahoma

Oklahoma Mineral Rights
1

Never too late to learn new things. I just finished watching the NARO webinar on OK division orders. The takeaway is DO NOT SIGN them and they had excellent reasons for why not. So I am recommending that NARO members watch it. Free for them. $25 for non members. Two very experienced OK attorneys with extensive litigation experience go behind the scenes and into the underlying law as to why not to sign-even the NADOA form. I have some homework of mine to undo some of the ones I have signed in the past to better protect my family. The link to the webinar can be found on the NARO website. If you are not a member, the office can help you. www.naro-us.org

I am hereby retracting my former personal recommendations to sign NADOA Division Order forms based upon the information given in the new webinar. (Not giving legal advice!)

3 Likes
2

Reagan & Ryan did an excellent presentation. Its nice to see that other confirm my position on Okla DOs.!

This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.

1 Like
3

So in a nutshell, never sign a Division Order, even if the royalty rate seems fair (1/4), and you’ll still (eventually) be paid as required by Oklahoma law?

If so, would it be helpful to send a note back to the oil and gas company requesting the DO that you have chosen not to sign, and that they shouldn’t bother sending you repeat DO requests?

4

Watch the webinar. It gives you alternate ways to give the companies the data they need, not necessarily what they want, you get paid properly and on time and do not give away some of your rights inadvertently. The webinar applies to OK only. Other states do require DOs.

The companies will send the DO if they want it signed. You do not have to request one,

2 Likes
5

I’m now an Introductory NARO member, but I still don’t see the OK division orders webinar? What tab is it under?

6

Go under the Members tab to the Webinars and Presentations tab. You will now have access to all the past webinars. “Diving into Division Orders”. Another great one is the one a while back put on by Martindale on your check stubs and corrections.

1 Like
7

Hmm; all I have access to under the Membership tab (when logged in) is the “NARO Colorado 2022 Virtual Convention Replay”. My membership access must not qualify…?

8

If your minerals are in Colorado, then the presentation would have limited value to you as it dealt specifically with minerals produced from Oklahoma wells.

This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.

1 Like
9

Ah; I see what’s going on–even though I’ve paid for my membership, it apparently still has to be approved by someone at NARO first, which explains why I’m not seeing that content yet.

@Richard_Winblad : My minerals are in Oklahoma; it’s just the above issue.

10

Try calling the office at NARO and see if they will fast track you do you can get into the webinar. I had a bit of trouble yesterday when I tried. The captcha needed a second try.

1 Like
11

Thanks @M_Barnes, so for new wells wait for the DO to see the breakdown for payment but don’t send it in? So if several months past the 180 days just send the letter requesting payment and interest, but not a DO? For OK wells.

12

But you have to send in the W-9 before you will get paid.

2 Likes
13

Supposedly our land man has verified they have current address and our W-9. I know I have sent to XTO. We’ve been unable to contact XTO, they won’t return our calls. Haven’t tried registered letters yet, I guess to DO Office in Spring TX?

14

Here is their email address that I know is monitored: [email protected]

Good Luck

15

It seems the only way to repair the damage done by DOs we have signed in the past is to submit a letter, probably a certified letter, stating that we want to revoke/nullify or withdraw the DO on file and then prepare for a long and contentious debate. Does anyone know of a more expedient, less painful method to correct this problem?

16

What rights does a mineral owner lose by signing and returning a DO?

1 Like
17

What damages do you believe you have suffered?

18

Most of the DO’s I have do show that they can be revoked by either party with written notice. Not sure why the attorneys in the webinar were hesitant about that part.

1 Like
19

Christine, thanks for your reply. That is an interesting point. I think I need to review all our DOs and begin this process. I will begin with CVR/Coffeyville. I want to thank the attorneys, Reagan and Ryan for alerting us to this issue. Very informative.

20

Best practices would be to provide:

  • A one page statement In Lieu of Division Order with the pertinent information about yourself, the well but without certifying the decimal interest. It should also quote the Hull case and point out whether your lease has a no-deduct clause.

  • A cover letter explaining why you refuse to sign a division order (or explain why a former one is being revoked.

  • An attorney’s letter reinforcing the documents above. Also explaining that failure to pay will result in interest being charged at 12%. Point out that the company can be on the hook for costs and attorney’s fees if sued.

  • A W9 form.

Don’t expect the company to be happy. They may initially not accept the Division Order Substitute.

This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.