I’m trying to determine what the payment is that I should receive for the below. Net $98,569.06 Decimal Interest X .0069999 This is what I calculate the Net Check Amount = $689.97
The well operator has sent me a check for $6.90.
Question: Which dollar amount is correct?
Thank you in advance for your input.
The equation is net acres/spacing acres x royalty x % perforations in your section.
Check the stub and see if you have massive post production deductions. Call the division order analyst and have them walk you through it. The decimal of 0.000069999 would give $6.90.
M_Barnes… Appreciate your response. I will try to figure out the equation you posted.
Fyi… (Background) It’s been a struggle for a newbie dealing with this oil company. They did not provide the standard check stub. They don’t seem to have a division order analyst and the owner is having a bookkeeper take care of this. Scary!
On May 21, 2018 (via certified letter) I had requested payment for production from 03/2010 to current. This is a low flowing well. Initially they ignored my request and then tried to discourage me from requesting payment by saying how little the amount was.
Finally, they sent me a check for $2.74. Once I persisted in requesting the information that is suppose to be provided on a check stub, they sent me the a Owner Inquiry Report listing of the DCP Operating Company, LP, and at that time they issued another check for $4.16, now totaling $6.90.
The listing shows the deductions already being taken out and the net figure is $98,569.06 which they re-wrote that number at the bottom of the listing and wrote they multiplied it (x .0069999%) = $6.90. You are correct that they are actually using .000069999 in order to arrive at $6.90.
Based on my research, this oil company failed to initiate contact with mineral owners to advise them of the change of operator as of March 2010, and failed to secure division orders to pay mineral owners. Unclaimed mineral owner’s revenue was not reported and no funds were delivered to Unclaimed Property Department nor to the Mineral Owner Escrow Account Department. I would like to evoke my right to 12% interest under Oklahoma Statutes Title 52-903, Failure to pay proceeds from production, but am not sure if my request for interest is valid.
Considering legal assistance would not be financially beneficial just on my part, but, it may very well be of interest to my 34 aunts, uncles, and cousins along with the other mineral owners in that section especially if the oil company has to pay all legal fees. It’s not much money, but I have several family members that sure could use that money. God Bless!
Every one of you that has not been paid should request the back interest under the Statues Title. Also, report them to the OCC. May not help much, but there will be record on file. The operator has a statutory responsibility for at least as long as they have owned the well. Definitely send everything by certified mail. Look them up on Bizapedia and the Better Business Bureau to see if they have a better address. Also use the address on the check. Sounds like a small operator.
.0069999 percent is the same as .000069999.