You should have Division Orders by about May and then payment in June or July. Congratulations!
M Barnes, Another question please. I wrote Trinity-Ops-Owner-Relations re DO (Division Orders). (Response from Trinity today): “We have not received the ‘title’ to set up the pay checks for Dora 2, 3, 4. & 5. You will receive the DO’S as soon as we setup the decks.” UNQUOTE.
MY QUESTION: What is the ‘Title’ and what is the “Decks?” Thank you M Barnes for keeping all of we NOVICES out of the dark…Leta C. MONTANA Home of Big Sky and Grzzly Bear Country
Once a well is online and has sales, the operator will do what is called a Division Order Title Opinion which can be much more rigorous than a leasing title opinion. The Division Order is a contract for payment of royalties and they want to make sure they have the right owners. There are hundreds of mineral owners in each section, so it can take a while to hunt everyone down. If you have two sections, then hundreds more, so it takes a while to find all the owners and determine how many acres each one has and if their title is clear. The list of owners and their acreage is called “the Deck”. Once they hav that figured out, they will need the actual survey data for each well in order to determine what percentage of perforations belongs with each section. Each well has a slightly different length, so the decimal amounts on the DO will be slightly different. If they are late, you will get interest (although you may have to request it. Seems like they “forget” a lot.) In the meantime, you might want to go to the OCC well records site and download the information that goes with each well, so you have a file for each one.
M Barnes, Thank you ever so much for expounding on my question re ‘TITLE & DECK.’ It is more detailed and precise than I expected. There is a whole ‘Oil Language’ that we Novice Mineral Owners’ don’t have a clue. It is no less exciting to the Novice to participate in this “foreign Oil Language”.-----so to speak. In the “next Life” I think I would like to be a Geologist, and walk your road. I am beginning to understand the excitement my late daddy had over the ‘Oil World,’ as I inherited these humble few mineral acres from him. I remember as a little girl, daddy loving to drive to the oil fields in OK. just to watch a new Oil well being brought in. And I am very…very personally anxious to read of future USA Independence from Mid-East Oil. I understand that we-----AMERICA, can now remain competitive because of massive volumes of hydrocarbons right here under our USA soil. Am I right M Barnes? And please stick around to answer our many elementary questions. Leta C. Montana Big Sky and Grizzly Bear County.
It is a fun and fascinating world! Take the USA independence with a grain of salt. We have been a net exporter for a couple of months here and there recently. However, it is an interesting world wide market. The US refineries are set up to handle the sour and heavy crude from the Venezuela and Saudi fields. The recent shale boom has mostly sweet crude, so we are shipping our sweet crude to European refineries which can handle it. So we all depend upon each other to make the whole market work. Some of the US Refineries can take a bit more of our sweet crude, so will be intriguing to watch the markets change over time.
M Barnes can you inform update us on Trinity’s plans/operations in Hughes 17-07N-10E. We were contacted some time ago that they had plans for multiple sites. Thanks.
Trinity Filed quite a few cases in 2018 at the OCC. You can look up their activity there. OAP The cases are: 201801138, 1136, 1140, 1141, 1139, 1137, 1223 and a new pooling case in 2019 under 201900714 which is pending.
Richard_Gleim, My…my…things are looking sweeter for my minerals, i.e., Trinity is currently drilling 4 (that is four) new wells (increased density) on S21/28. My minerals are S21/07N/10E. All indicators appear there is plenty of hydrocarbons… My minerals are a GAS PLAY. Horizontal drilling. I currently receive Royalties on DORA I (WELL NAME). DORA 2, 3, 4, & 5 are currently being drilled. They (2, 3, 4, & 5) were SPUD in Aug. & Sept. '18. Allegedly, Dora 4 & 5 had ‘First Sales.’ 12/22/'18. I would ‘not’ have known of the ‘First Sales,’ but for the help and knowledge of M Barnes. As always, thank you M Barnes for all you do on this MRF (Mineral Rights Forum)…Leta C. MONTANA (Big Sky and Grizzly Bear Country)
Hello, I have mineral rights in Hughes county Sec 28 Township 7 North Range 8 E East half of Northeast Quarter and Northwest corner of Northeast Quarter. Are you aware of any activity or companies who might want to purchase or lease the rights?
Thank you
Silver Creek is pretty much the only game in that section. They did a lot of leasing in 2017 and 2018.
M Barnes…continuing on as related to minerals S21/07N/10E Hughes County Ok. Response today 5-9-'19, from Operator Trinity in Houston, Tx. My Q: I want to know specifically when I may receive a D.O. for the four new wells on DORA (Well name). ANS. from Trinity: "We still do not have a Division Order Title Opinion to work with. As soon as we receive it, an analyst will be assigned to work it and setup pay decks. I cannot tell you how long it will take to accomplish that. " M Barnes, am I seeing a little ‘foot dragging,’ and perhaps I will be forgotten unless I ask for the 6 month Statutory 12% interest on delayed payments? What is a reasonable time frame to expect a D.O.? Thank you for any feedback. …Leta C. MONTANA (Big Sky and Grizzly Bear Country).
Ok. Now that all the DO is filed. Back pay is paid. On 33.33 acres back pay was around 24k. That was 13 months of back pay from April 2018 until now. So saying that would that be roughly 1800 a month for the royality check adding up to 24k. Or is that just the total number they produced on and pay out the money… trying to get a vague idea of monthly producing numbers via this section
Leta, here is a little bit of info I can provide (bear in mind, I am not M Barnes, and don’t have her wealth of knowledge ).
I had two groups of Trinity wells which all had first delivery around May-June of 2018. I received DO on one group in March of this year (and an amended DO in April); still waiting on the DO for the other group of wells.
As to how long a Title Opinion takes, obviously the State of Oklahoma thinks 180 days should be enough (thus the late interest rules). I wonder if it should be a sliding scale base on the last time a Title Opinion was created for a given Section. The longer it’s been, the longer it seems to take. But that is just my own opinion.
From this small experience of my own, it happens to be with the same company, and in roughly the same area, so it might be close to what you’re looking for. The group for which we have the DO in hand took 9 to 10 months from first sales. The other is 12 months, and still without the DO.
It’s not encouraging, I know, but perhaps it helps.
Mainline 13,
Thank you ever so much for your response related to Trinity Wells and D.O’s.
This gives me ‘time parameter’ potential. I am ruminating on the possibility of being “stone walled” on specific TITLE OPINION action. i.e., the longer it takes -----the longer Trinity keeps there $$$ from the mineral owner. I am currently tracking information on other source link showing Permits to Drill and COMPLETION reports. What keeps surfacing is the frequency of lots of hydrocarbons in the WOODFORD, MISSISSIPPIAN and SYLVAN FORMATIONS. My Royalties from Dora I have come from the WOODFORD FORMATION. S21/07N/10E. It would logically follow that Dora (Well Name) 2, 3. 4. & 5 are going to “sweeten the pot” ----so to speak on $$$ Royalties, therefore a delay on Title Opinion.
Mainline 13, if you become aware of new substantive info. related to our interest please post on this Forum.
Regards, Leta Head Carter
MONTANA (Big Sky and Grizzly Bear Country)
A general answer is that if your wells are drilled over two or more sections, it takes longer to do the Division Orders because there are hundreds of owners in each of the sections. Once they sort out the owners and their title position, they have to use the surveys from each well to determine the perforations in each section since each well has a slightly different length. (The surveys are usually posted in the OCC well records site long before the completion form.). They are holding the royalties until they get the title opinion back. They will have to pay you 12% interest if your title is clear and less if it need to fixed according to law. You actually make more money if they are late, so not a bad deal… I usually keep an eye on the Gross Production tax site to get a feel for production. If I have not been paid after about eight months after first sales, then I write a very nice letter to the operator reminding them of their statutory obligation to pay interest and send by certified mail return receipt. They tend to get moving after that. You may have to request the interest separately. Depending upon the operator, the royalties may be paid by one part of the company and the interest by another part. Check those first few check stubs and hunt for it! Sometimes, they will “forget” to pay you unless you demand it in writing. Keep copies of everything you send and copies of that green receipt card when it comes back.