In 1980 my father invested with a group to obtain mineral rights in DeSoto Parish. A well was subsequently drilled in 1981. He did not participate in the 1981 well and went non-consenting. Fast forward to 2001 and he was approached about a new well to be drilled in the same area and he participated in the 2001 well. Apparently, his working interest has been held by production.
My father has since passed and I began reviewing old files. I found a Division Order from Chesapeake for a producing well. He did not sign the Division Order.
It was my understanding that as a Working Interest participant, my father would be obligated to
participate in funding the drilling process or go non-consenting. My question is, why would he get a Division Order if he did not participate in funding the drilling process?
You say he participated in the 2001 well. That could be the one for the Division Order.
He participated in a well, but the paperwork is missing.
If he went nonconsent, he might have been entitled to an overriding royalty interest. On the Division Order, did it give a code such as RI, WI, or OR or anything similar.?
Tim,
Thanks for your reply. I’ll respond to each item.
The Division Order was for a well drilled in 2011. This was 10 years after the well he participated in.
I am sure I have all the paperwork. He went non-consent in 1980. In 2001 he was approached to purchase his working interest , in this instance he participated. In 2011 he received a Division Order for a well drilled in 2011. He was not offered an opportunity to participate but was presented with a Division Order.
The Division Order has a line as follows: INT TYPE: 1 (WOR). I am not sure what this means.
The WOR indicates a working interest. I’m guessing, but not positive, is that the well was sold to a new operator and the new operator issued their own Division Orders.