I participated a sum of money the Operator requested on the Oklahoma Division order. The Oil company cashed my check and I was noted as a owner of 8 and 1/3 percent interest in the well to be drilled. The well was completed before all the money I put up as participation was used. I was not given a rebate and was asked for more money to keep the well going. I sent a participation agreement to the Oil company but it was ignored. Requests for copies of expense receipts was denied. Does the Law require me to continue sending extra money to the Oil company to maintain this well? Or,does the oil company owe me for the continued participation contributed plus interest ? Do I need a lawyer to obtain a court order ?
Charles: it sounds like you have a working interest. Your question is going to require an Oklahoma oil and gas attorney to review your paperwork and answer your questions. You can check with the Oklahoma Bar Association for a referral.
You will find Rachel Talasaz an OK attorney if you look in the directory.
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Charles- No need to hire an attorney. It sounds like you agreed to participate with your interest and you paid your share as per the Pooling Order, not a Division Order. The operator drilled the well, but didn’t spend all of the money that they anticipated spending so you have a Joint Interest Credit Balance. The additional bills cover Lease Operating Expenses, LOE’s, that aren’t part of the Drilling & Completion Expenses that are what the Pooling Order sets forth. You need to pay those. You also need to send a letter to the Operator requesting either they use your credit balance towards the LOE’s or request a refund of the original paid amount. This happens all the time to parties that aren’t used to participating in wells. Certified letters work much better than phone calls or e-mails.
Charles- Meant to say you should request a refund of your credit balance from the original paid amount Sorry for any confusion.
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