- On Division Order I recently received for a well in a Texas county, on the Division Order’s line labeled “Production” only “Oil” is checked; neither “Gas” or “Other” are checked. I asked Operator why only “Oil” is checked and response was “You will not receive another division order for other production, as there are no products other than oil produced from this well.”
What happens if, in the future, the well starts producing “Gas” and/or “Other”?:
a) If I sign Division Order with only “Oil” marked on the “Production” line is there a possibility I will miss out on royalties for “Gas” or “Other” if ever produced in the future? If “Gas” and “Oil” were ever produced would/should I receive an additional Division Order showing that those products are now being produced?
b) I think this might be a re-worked well vs. a new drill. Would it make any difference if it was a new drill vs. a reworked well?
c) On the Division Order’s “Production” line what is meant by “Other”?
- In years past I’ve received other Division Orders (from different Operators) for wells in this same Section and Block. Separate “Interests” amounts have been listed on past Division Orders. Example: an “RI” interest is listed (with its accompanying decimal) along with a “PP” interest and its decimal (or sometimes with an “OP” or sometimes with “Override” and their corresponding decimals) so that two different “Interest” decimals are listed on the same Division Order.
a) Is there any problem with Operator for this current Division Order combining all interests into one decimal vs. separate decimals as I’ve seen done in the past? On this Division Order only ONE decimal interest is listed and it’s labeled as “RI”. Operator said they have simply combined all Interests into the one decimal that appears on this Division Order and listed that combined interest as “RI”. (I’ve checked, and this one decimal does equal the sum of two different Interest types that appeared on past Division Orders in this same area.) Is it acceptable for an Operator to combine various types of Interest into one decimal interest that is then listed on the Division Order ……. or would combining various decimal interests into one decimal interest (vs. listed separately) have any negative implications for me?
b) On “Type of Interest” line on a Division Order, what are the meanings of “PP”, “OP” and “Override” …… or are all these just different designations for the same thing?
- I inherited these mineral deeds from a family member who died 20+ years ago. At that time all required documents to put interests in my name were filed and recorded with the County Clerk. Since that time I’ve received other Division Orders (for new drills and reworked wells) from other operators in this Texas county and none have asked for a copy of a death certificate …… but THIS operator tells me that as they are updating their revenue deck, their Director of Title requested a death certificate to clear the chain of title. I’ve told him that no other operators have requested a death certificate and my understanding is that all necessary documents to transfer the interests to me have been recorded with the County Clerk’s office and everything to prove clear title should already be available for viewing …. but this operator continues to say they need a copy of the death certificate in order to put my interest in pay.
a) If other operators with wells in this Texas county have not requested that I send a death certificate to show clear title, why would this operator request it? Is this a legitimate request by the operator submitting this Division Order ……. or does this operator just not want to take the time (and possible expense?) to find the death certificate in the public records of this county?
b) Is it the case that not all operators request the same items from mineral owners in order to see that there is clear title?
I’m trying to gain a more complete understanding of how Division Orders work. Any thoughts / suggestions / advice concerning these questions would be appreciated. Thanks!