Calyx dragging feet on sending me corrected Division Order -- any recourse through OCC?


I handle my mother’s mineral interest and she happens to own 18 net mineral acres in Hughes County. We leased this tract of 18 total acres on 11/7/16 to SEO Oil & Gas out of Tulsa. We subsequently received a division order in Jan. 2019 from Calyx, also out of Tulsa, where the royalty decimal they showed (after I did the math, which I always do on DOs) reflected only 6 acres ownership rather than 18 acres. It was an obvious and big mistake on their part and my mother did not sign nor return the division order.

I contacted the division order specialist at Calyx about this matter and was told “I’m glad you found the error” and I followed up by sending the court documents he requestted that proved my mother’s ownership of 18 acres in that tract (plus the original lease listed her as owning the 18 acres) but to date, nothing has been done to issue us a new division order. I have made numerous calls to Calyx and was told there is only one division order specialist, and guess what, he never answers his phone when I call. Emails to him have also gone unanswered.

The odd thing is we are receiving royalties for the property in question, at the incorrect decimal percentage that reflects only 6 acres of ownership, despite our never returning the division order that reflected the incorrect ownership of only 6 acres.

Could filling out a complaint about this company at the OCC site help? Has anyone had any luck doing this with a similar matter?

Any advice would be appreciated!

In OK, the operator pays whether or not you sign the division which is a good reason to always check them!

I doubt that the OCC will help since this is between you and the operator. I have found it useful to send copies of the relevant information by certified return receipt mail. I remind them of their statutory responsibility to pay 12% interest on unpaid royalties and that usually get things moving! Keep track of all the payments that are low and request the other two thirds of the back payments plus interest.

Thank you for the quick reply, Martha. Would you recommend I get a lawyer to send the letter or will a carefully-typed business letter of my own with the mention of the statutory obligation regarding 12% interest be enough to get them moving? Also, would the copy of the lease that shows the 18 net acres owned by my mother be enough “proof” to send them via letter?

Start with your own letter sent by Certified Return Receipt mail with your owner #, legal description, copy of the deed. The lease may say 18 gross acres if that was an original parcel. The lease rarely has the correct net acres. You need the deed or probate document that says 18 acres to prove the acreage. I was caught early on when I didn’t understand that little tidbit.

I’d start with the letter. Martha is correct that acreage recited in a lease is often incorrect (ususaly too much). Once you have a reply it can be analyzed. While most of us attorneys love the work, you’d be better off poking the bear yourself. If they are wrong, you are entitled to interest. If they are right you save attorney’s fees.