Oil company has sent division orders and their calculation is based on 193.47 acres. When we leased, the agent based payment on 198 acres. How do I reconcile the discrepancy? Do I have to accept the oil company’s determination?
The leasing agent does a leasing title opinion to get the land leased. The Division Order title opinion is done by a completely different attorney and is much more rigorous and detailed since the royalties are a much higher monetary value. If you have a deed that states exactly 198 acres, that always helps. On occasion, a river can move and that causes the acreage to change. What section, township and range and I can look up the maps.
Section 30 6N3W. The unit is 633.28 acres (so it’s slightly less than typical 640). Not sure if that’s relevant.
The exact description on your deed will be important in those irregular sections. If you are in the lots described along the western edge, that can be the determining factor. Here is a screenshot of the section. image|690x481
Thanks - yes we are in the SW and NW quarters so will look for deed to check it out. Thanks so much!
I have a feeling that since you are on the west side, you may have slightly diminished acreage.
Assuming you own in the NW/4 and SW/4 the lots are the reason for the difference.
Typical Section: NW/4 (160) and SW/4 (160) = 320 Acre Your lease was for 198 acres 198/320 = .61875
Since yours is a correction section it’s actually NW4 (156.44) and SW/4 (156.84) = 313.28
.61875 * 313.28 = 193.842 acres
Thanks for your explanation. It’s makes sense and helps me understand how the discrepancy came about. I appreciate your response.
For Oklahoma minerals the company is required to pay you even if you do not return a Division Order. Do provide them with a W-9 and direct deposit information. Some companies like to play games with Division Orders.
Thanks Richard. We had wondered if they would proceed with payment and also whether there was a deadline for responding to division order. I was told there’s no deadline but I had not asked the question about payment so good to know.
Appreciate your help!