I own minerals in 12 of 1 South 5 West. Marathon completed a well last June 23 reporting 151 bpd and 1098 mcf gas. They show a "first sales date" of June 27.
I have never received division orders and the OCC site shows nothing in production reports.
A few weeks ago, I called Marathon and was told someone would call me back. Of course, that never happened.
Now I see they filed with OCC a completion report on Section One of 1 South 5 West with a well about double in oil and gas of the Section 12 well and first sales date of 9-21-2014.
Again, nothing is shown in production reports on this well in Section 1.
I don't know much about how all this works, and since Marathon doesn't respond, I am trying to get a handle on what is normal and how soon I should expect to get a division order.
I know they have to clear title, but if they are in fact selling production in the meantime, why does it not show on the OCC production listings?
Anyone got any thoughts or can anyone educate me or give me any phone numbers with real people to ask? Calling generic and listed numbers shown on websites just gets no response.
Paul
They have six months from the first production date start paying royalties. Division orders are probably a little behind because all the recent drilling activity. After the six month period has elapsed the oil companies have to pay a 12% interest penalty. If you have received nothing after the six months then send a certified mail demand letter ATTN accounting department. If that gets no response file a complaint with the OCC.
Production for the Ely 1-12H
Paul,
Try the link above for production thru Oct 2014. Click number under PUN then click production tab.This site is usually 3-4 months behind.
I am being paid royalty by Marathon. 1st production was March, received DO in Oct, paid in Nov.
Sent letter requesting interest by regular mail (uncertified), received interest check within 3 weeks.
Soonerpe, thanks. I was not familiar with PUN but I am now thanks to you! I will "bild a far" under them and get this straigtened out. Amazing what a letter can do, and I think I will show it cc to the OCC just for the heck of it.
You have been most helpful and I appreciate it.
Paul
George,
I sent the letter after I received DO and first check. I don't think there is much you can do to get them to send the first royalty check. Ownership in some sections is so complicated it just takes a long time for them to send out DO's. You just have to be patient; then remember to request they pay the 12% interest because it took longer than six months.
I have royalties in 1-1S-5W and 12-1S-5W also. The following is taken from my notes where I speak to my brothers and cousins which also have interest. (1.) 1-1S-5W Spud date 5/15/2014, first production date was 9/21/14. We were told that there was delayed paperwork. Since the last well drilled in 12/14 we can expect Division Order in possibly June of 2015. They should pay 12% interest by going over 6 months. (2.) 12-1S-5W Spud Date2/16/2014. First production in 6/27/2014 (I don't have any further notes on this one. If anyone has any updated information on any of these two wells, I would appreciate an update. OR any of the following:
2-1S-5W, 2-3S-5W, 7-1N-6W, 11-1S-5W
Three months later from my original post (February 19) I actually got an email concerning the status of this well. It will be a year next month since the well went on production. The email said simply that the "title was being cleared" and then division orders would be mailed.
In the past 90 days I have written the OCC and Marathon. The OCC directed me to a specific person in Tulsa at Marathon. That person, of course, was in another division of the company. Marathon did not answer my letter at all. I have had two different "case numbers" assigned to my inquiry and have been told the first one "didn't work for some reason". In my calls, I have been shifted from one person to another and clearly at least some of them have been working from home given the background noises.
The email I received yesterday was from.......get ready......IBM. It seems IBM Business Services is handling some of this for Marathon.
I have little history in the oil business but some knowledge based on a fifty year career in finance and real estate. I have never seen a situation before where a simple question takes ninety days to get a response, and then it is so generic as to be, essentially, worthless. Clearing title? For a year? Of course, the production monies will be eventually paid and with the interest penalties outlined by law, but that is not the point.
A year? Really? Never any communication at all with interest owners? None? Wow.
Those of you with multiple interests may be accustomed to this kind of poor business management. It is a new experience for me.
FYI...IBM handles almost all of Marathon's accounting. Has for years.
My family has a small interest in S12 1S 5W. I have heard absolutely nothing from Marathon.
Heard through a cousin that Division Orders should go out between now and August for 12 and 1 of 1S-5W. If and when they pay, looks like we will get that 12% calculated penalty tacked on to what we will be paid for that was produced.
Have you heard any updates on sec 11, 13 &14 1S 5W?
I mailed a top lease back concerning 11-15-5W on 6/23/2014 and have not heard anything from them. Cousin said that as of 3/2/2015 there was no drilling, (but this could be old news). I have some notes sporadically written down that says "Completed 2/13/15; Division Order due in 6 months in August 2015 unless its part of field." [I don't make good notes to myself.] I have nothing on 13-1S-5W or 14-1S-5W.... sorry. I am not trying to confuse you. I just have these notes written down and its hard for me to decipher them since I have slept since then. ;)
K Dawn Bauer said:
Have you heard any updates on sec 11, 13 &14 1S 5W?
FYI: I received a Division Order dated June 19, 2015 from Marathon for Hays 1-1H. (1-1S-5W) yesterday. Those with interests in this site should have or can expect a D.O. soon. Was told by my cousin that 12-1S-5W should not be far behind. When you get your funds, don't spend it all in one place!
UPDATE: 7/8/2015 My cousin from Duncan said that Marathon is to pay on Hays 1-1S-5W on 7/25/15, but there still is not any word on 12-1S-5W.
Well... mark us wrong on that last response. I got a direct deposit from Marathon today for Hays 1-1S-5W that was pretty sizeable. My guess is that Marathon is catching me up today and will pay their normal monthly payment on July 25th. I still have not heard about 12-1S-5W yet.
Here is my latest on Ely 1-12H (if interested) I got a Division Order today and my brother told me when I return the signed order, to include a request for unpaid interest for Hays 1-1H and Ely 1-12H going back to 6/27/2014 (1 year, 1 month, 29 days) as of today.
Finally got the Division Order for 12 of 1S, 5W on August 13. The packet indicated IRS form W-9 was enclosed for execution, but it was not enclosed. I printed off a W-9 and sent it back with the DO. I received a check dated August 25 for the oil sales through July 20, 2015 and the amount was for all oil production since July 20, 2014. However, there was no payment for gas production.
I called Marathon and was told the gas would be paid, probably beginning with the payment to be received in September (2015). When I asked why it had not been paid, I was told they were still "working on it". OK!!
Once I receive the gas payments for production to date, I will send a demand letter for interest. Can't really do that until I know the total amounts for both oil and the gas.
I don't know if they failed to send a W-9 with all the division orders or just missed my packet. But if they did fail on all of them, that will probably just delay payments for a lot of the 100+ interest owners for more time. This whole saga reminds me of the old Abbot and Costello routine "Who's on first?" If you don't remember it or if you are too young to know about it, watch it on Youtube. It reminds me of the major oil companies sometimes the way they talk and operate.
https://www.youtube.com/watch?v=kTcRRaXV-fg&list=RDkTcRRaXV-fg#t=47
Paul