Hello, We received division orders on three wells and the NRI appears to be short by 20%. I have a suspicion this may be because they are incorrectly paying a royalty of 1/5th when the lease was signed at 1/4th royalty (but it could also be due to a discrepancy in net acres, but our ownership interest is pretty straightforward). How should I approach/dispute this with the operator in a way that will resolve the issue? Should we just ask their division order department to “show their math” and explain how they calculated the NRI? What’s the best way to phrase this request? And would an email suffice?
Dear rollotomasi,
The short answers are: Yes, you should approach the Operator. Yes, the First step is to send an email. and give them a call a few days after. They usually cooperate if you give them the information you’re questioning (They’ll also ask for your owner number). If they don’t cooperate, You may want to also send them a request by registered mail. We do this as a last resort. Second, It’s our experience that it’s not out of line to ask the operator for the excerpt from the Title Opinion that shows the math.
Hope this helps, Scott
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