Received DIVISON ORDER 15 July 2015

Oklahoma Mineral Rights Logan County, OK
1

Out of the blue I receive this DO. I promptly return the two forms filled out to the sender/payer next day of course.

NW/4 SECTION 17-19N-4W is the gas field involved. Using the decimal interest amount listed on my DO what else do I need to calculate my royalties?

B.R. Polk Inc. sent the DO, internet speaks well of them, they are in Oklahoma City.

I understand this is a POOLED field. No other information is available to me including prior monthly statements. This is from my grandfathers childhood family farm where I remember them drilling for oil during WWII. I don't know the farm size.

2

First, Do you know how many acres of mineral you own? If not, go to the co. clerk office and check it out or hire someone who can do it for you. Lots of people out of work, so it's easy to find someone to do the checking.

#2 How big is the pooled acres, most are 640 in OK. You can call OCC and ask, know your legal, name of well ( on the DO), etc.

Once you figure that part out then you can make sure you have the right decimal point

You take what % your lease says you get, like 1/8, 3/16, 1/4, etc. This is also filed at the Co clerk office in case you don't have a copy of the lease.

Now take the total BB times the % you get, divide by 640 if that is the pooled Acres then times the acres you own. That will give you the amount you are to get paid on. This is the long way of doing it, but you can't miss with this method. Then take the # times the price of gas or oil.

Example: Total BB 1,000, times you % (3/16) = 3000 divided by 16= 187.5 b.

187.5 divide by 640 (pooled a)= .293 per A

160 A (A you own) times .293 = 46.87 total bb per statement or month.

46.87 BB x price $50 = $2343.50 less deduction.

Always check the decimal point on all leases. Oil companies love people who think the oil company are a great guy, but they do make mistakes. And some oil companies makes mistakes to their advantage.

Also, if you have a no deduction lease, make sure you don't getting charged for things you shouldn't pay for. Everyone has to pay production tax, OKLA tax, and a few government charges.

3

You need to track down the exact acreage that you own. You are relying upon them to be accurate. That's not necessarily the right tactic. I am working on an estate appraisal and the information supplied by the estate was not confirmed in many cases once we got into the records. A landman found numerous errors and even parcels the estate was unaware of. 44 of some 90 interests had discrepancies in the title.

And if the well is a cross unit well, you have to know the percentage of the well in your unit. We used Lyle Stanka, Inc. from Yukon and I was impressed by his research thoroughness.

4

Jim,

Here is a post on the subject.

http://www.berlinroyalties.com/oil-gas-minerals-royalties-educational-blog/2015/5/4/the-division-order

You also do not have to sign until you figure it out.

P

5

Jim,

After reading Parker posting, it made me think about a friend who did sign a DO to property she thought she owned from an estate. Turned out, she didn't own it and she had to pay back everything plus 12% interest for the pass 3 years to the rightful owner of the minerals. So be careful what you sign. She had already spent the money, so she had to take a loan out to repay it.

6

The 1889 land run was when my Great Grandfather acquired his 160 acres at the age of 23, he was from Iowa.

Land later sold to Delbert Winchester in 1954. A Royalty deed sold to my Grandfather in 1957 on the 160 acres is the source of this DO. This was then passed to my mother by probate and now to me by probate both done in Oregon. I'm unaware of any income from this Royalty deed, I remember well drilling being done on the 160 acres but never a word about any monthly income.

The Logan County Clerk kindly located 4 entries under my grandfathers name and they are in the mail to me at this time, Ms. Troy Cole did this via email. I will acquire the Oregon probate files ASAP for further research.

I will soon see a monthly report from the DO provider and will begin to evaluate this issue and provide a analysis to this board.

Thank you all for your input.

7

I am working on an estate in Logan County which had numerous properties dating back to 1925. No one has brought up title to most of these since the early 1950s. Discovered dozens of inconsistencies and since we worked on it, an heir was contacted by a landman about yet another parcel that we did not have listed. There is no telling how many such interests languish for decades waiting on the owners to claim the property.

8

This quarter section remains undeveloped today, yet someone pays the taxes each year. I have seen the satellite view on mapquest and it is only fenced and one stretch of cross fence. There is no evidence of a well head at all but there is a well head on the quarter section to the west. Delbert Winchester was a sheep breeder, he may have done the fencing. A warranty deed was given by my grandparents to him in 1954. The language in that instrument will be interesting to me. There is another owner listed as John T. O'Donnell Jr. He was killed in 2008 (Car accident).

I have been in property ownership/development since 1965 and have always done my own title searches, same thing a landman does. The quarter section here has family history and I may purchase it if that option comes up. It's appraisal value is $2300.

9

Oklahoma does not have an ad valorem tax on minerals.

10

Found a very important Warranty Deed online just now. It gives my grandfather mineral rights to 20 acres for 50 years from 1954 or as long as there is oil, gas or other minerals to be taken. I can now see why my mother was still receiving royalty checks. This Warranty Deed transferred ownership of 160 acres to Delbert Winchester but held back 60 acres of mineral rights basically forever, 40 acres went to my grandfathers older brother. I have also found another instrument where a subsequent owner gave all of these same mineral rights to the V.A and the Oklahoma Medical Foundation in 1999. Virginia Pflum mentioned 12% interest, how do I get my money back?