Letter in Lieu of Division Order in Oklahoma

[M_Barnes]

Letter in lieu of Division Order.docx (13.1 KB)

Many of you have asked about a letter to send in lieu of a Division Order in Oklahoma. Division Orders are not required in OK, but you probably want to get paid without having Federal Income Tax taken out. In light of recent court cases and OK statute 52, this is the letter template that I am using. (I am not giving legal or accounting advice.)

Fill in the items marked in red with those that pertain to your well and situation-use the Division Order information as a guide. The Property ID, wellname and the Owner number are on the Division Order. (Then turn them black) Be sure and give your address and send the most recent version of the IRS W-9.
IRS form W-9 OCT 2018 blank.pdf (129.0 KB) You may give your email and phone number on the letter so that the Division Order Analyst can contact you if there is a question.

Send the letter by certified mail (fill in the numbers of Certified Mail receipt on the letter so you can track it) and keep a copy of the letter, the green card that is returned and a copy of the original Division Order for your files. Mark your calendar for when to send a second request for payment and interest if needed if the 180 days past first sales passes. You can look up the date of first sales on completion report at the OCC well records site (Test. Form 1002A) or the OK tax site. (https://oktap.tax.ok.gov/oktap/web/_/. Use the HELP Public PUN Search option).

[Megan_H_L]

Thank you so much, Martha! This is a huge help.

[Teresa_C_McKenna]

Thank you so much! I have been using the template today and it is very helpful.

[Sharyn_C]

At one time, I believe, you offered suggestions for a letter to use requesting a change in a current DO with a delay in payments until $100 has accrued to $25 instead I’ve search the Forum and can’t find that post. I have an old well where the company sends payments every few months, and twice now after receiving nothing for 6 months when I know they owed I was told the checks were lost and had to be reissued. I would really like to change to a $25 requirement to be able to keep track. I’d appreciate a repost of your advice for that letter if posssible.

[M_Barnes]

You can pretty much use the same letter, just delete the last sentence of the first paragraph. “Under OK law…”

On the second paragraph, “Please keep me in pay statues and please pay me monthly for proceeds greater than $25.00 (keep the rest the same with the statute number)…”

Send by certified mail.