I’ve just received a Division Order transferring my dad’s RI to me & my siblings. It’s for NE Purdy Springer Unit Well 205321, Sec 21-4N-4W, from Vitol Inc. it took me some time to figure out that Merit, who used to send checks to his estate, is now Vitol. We finally completed probate in OK so now I need to figure out & sign this DO. My question is concerning the statement that proceeds will be paid less taxes “and any trucking, hauling, or handling charges”. Is this customary? I understand the taxes but can they also deduct these overhead charges? Thanks for any help
Pamela: you don’t say where your mineral interests are located, but if they are in Texas, the division order is a critical document that must be reviewed carefully before signing. Many people use an oil and gas attorney to do the review. For example, the attorney will compare the language of the division order with: 1) the language of your lease, to be sure it does not contradict your lease; and 2) the statutory language for division orders in the Texas Natural Resources Code. You will also want to be sure there is language in the division order that says nothing in the order is meant to contradict anything in the lease.
Thank you for responding to my question. My Royalty Interest is in Garvin County, OK so I don’t know if things work the same there as they would in Texas. I have never seen the lease so really have no way of knowing if this Division Order agrees with those terms.
Pamela: Check with an Oklahoma attorney. I recollect that division orders are not required in Oklahoma, so this division order may be a disguised way to change the lease terms. To get a copy of the lease, ask the well operator to send you a copy or research the online deed records.
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