I received division orders where I don’t agree with the percentage. I emailed owner relations and asked them to confirm how they assigned the percentage. They replied saying they asked another person to reach out to me. I didn’t hear anything so I followed up two more times.
I received a check today for the Clenburne well. Should I cash it while the percentage of ownership is in question? Or by cashing it, I’m agreeing with their calculation?
Just so I’m not doing something wrong.
Jamie:
Cashing the check will not alter your ownership. Remember that it is quite possible that you are part of a multi-unit horizontal, meaning the lateral wellbore is underneath 2 or more sections. Your section will only have a representative share of the entire wellbore, thereby reducing your interest in the whole unit. Most of the time, but not always, the unit split designations are set forth on the Division Order or paperwork that came with the DO.
Respectfully, Todd M. Baker
Yep, I heard from Gulfport and apparently there was a change to the section allocation. Last I seen it was 50% and got adjusted down. Thanks for the response
Hi Jamie, Our division order says 50% in 12. did they change that?