Interesting response from the owner relations department over at Trinity Operating in response to our inquiry into the pay status of the 3 new Beaver Mountain wells in 20-8N-20E. PUN details make it clear all three wells became in pay status as of November of last year triggering I would assume statutory time tables for timely distribution of division orders and pay checks. Their boiler plate response was “We have received your inquiry. The analyst working this area is waiting for a revised Division Order Title Opinion in order to set up the pay checks. I do not have an estimate on when this will be completed at this time. Please contact us if we can be of further assistance.”
I’m not particularly worried about eventually getting our due royalties but just how long are they able to put off distribution before getting sideways with OCC?
The statute says six months from first pay date. That may slide a bit due to missing the check cut date for the company. Many companies are having a hard time getting their title work done in time as the courthouses are packed and there are hundreds of owners for each section. I usually wait until eight months after first pay and write a very nice certified return receipt letter to the division order department requesting information on timing of payment and reminding them of their statutory requirement to pay interest and that I am hereby requesting it. I don’t mind waiting for the interest as I get more money that way.
M_Barnes,
Thanks again as always for your keen insight. It does make sense what you say regarding the challenge facing these operators with title work . In one our Grady county sections I counted over 108 owners listed on the most recent division order. Landmen earn their keep…