Input On Division Order Questions

[Lee_Evans]

We have just recently received Division Orders from Chevron. It is a bit confusing when we look at EXHIBIT A. This chart shows “DOI SUFFIX” for 1, 2, 3. On each of these it gives the Tract Interest, Type of Interest, Product Code, Unit Interest. We aren’t sure if this is a Division Order for the 3 Horizontal Wells that were drilled, or if it is for one Well which may have 3 parts to it?

Also under each of these it gives Property Name, Property Tract Description, County or Parish and State.

The problem is on #3 it gives all of the descriptions except for the “Property Tract Description” which is NE/4 NE/4 Section 15-23S-28E. Why would they put the Property Tract Description on the other two but not this one?

We are waiting to hear from Chevron for explanation on these questions before we sign the Division Order. I hope this makes sense in what I am trying to describe. It possibly does to those who have had previous experience and knowledge with Division Orders.

If anyone has a comment on whether we should sign it as it is or not we would appreciate your input with regard to these questions as this is all new to us.

Thanks, Lee

[Rick5]

We too have received division orders from Chevron that are confusing. We forwarded them to our attorney to approve. These are for the Yeti wells in sections 15-22 T25s, R32e Lea county. Just wanted to let you know you’re not the only one receiving hard-to-understand division orders.

[Lee_Evans]

Thank you Rick for your response and also confirming what I am sure a lot of people who are newbies in understanding this aspect of the division order language and its legalities.

If it is possible and or also permissible, I would be most interested in the reply of your attorney as to if the division order was complete and accurate in the way it was presented to you to be signed. Thanks, Lee