I have received 5 division orders for the property is previously discussed under “I’m totally uninformed” in Andrews County, TX. They are from Ovintiv USA, out of the Woodlands, TX.
There is no information in these envelopes, just a division order referring to “decimal interests” and a page listing legal, well names, decimal, etc. Nothing describes the terms of the division order except their rights in the agreement. Is this normal operating procedure? In my husband’s papers, I found a division order of several pages (another property), which he never signed and returned.
One of the paragraphs on the cover page (which also acts as a signature page) says, “Ovintiv USA is authorized to withhold payment pending resolution of a title dispute or adverse claim…” Authorized by who?
Somehow, all of this doesn’t seem exactly “Kosher”.
is this all normal and I just don’t know anything? (It’s true I don’t know anything about oil and gas.)
This is standard operating procedure. In Texas, you must sign a division order to get paid. The decimal amounts that are shown are due to an equation that factors in the net acres, the spacing unit, the royalty and feet of perforations that are in your property. The Division Order should look something like the NADOA (National Association of Division Order Analysts) from. 0_NADOA_Division Order Model Blank Form 2017v 2.pdf (78.2 KB)
If it has more complicated language or tries to change the language in my lease, then I copy the relevant information as to well and decimals, etc. and use the NADOA form. They really want your W-2 so that they can pay you.
If your husband never signed the other DO, then you may have funds being held with the operator or turned over to the state. Contact Unclaimed Funds through the Texas Comptroller’s office. Do not use a service or they will charge fees which are unnecessary.
I completely agree with M_Barnes post and would just add a couple of other points.
You may want to reach out to Ovintiv for an explanation of how they calculated your decimal interest. As M_Barnes noted, it is complicated and sometimes I’ve seen mistakes made. It is hard to catch those mistakes if you don’t know how the operator is calculating the decimal interest.
About the potential for unclaimed property from not signing a Division Order, if your husband did not live in Texas then also check the unclaimed property website for the state where he lived (in addition to Texas).