Change in Royalty Interest


I have been receiving royalty payments from Charter Oak (Stone Creek 1-13) in Carter County for approximately 8 years now. I received an Amended Oil & Gas Division Order and the decimal interest was lower that the original division orders. I wrote them a very professional letter asking why the interest was lower and their response was a sticky note on my original letter stating the interest was changed due to a DOTO (which I had to look up what that meant as I am not well versed in this business) and the new lower rate was what I was getting! So my question is after 8 years why is there a new title opinion done & do I have the right to ask for the portion of the TO concerning my interest to verify the accuracy of the TO regarding my interests? This mineral interest has been passed down through the family and over the years has become very murky with forgeries and errors. Any suggestions or do I just accept Charter Oaks word for it and move on with the lower interest? Thank you


No do not accept. The only thing that changes your interest would be a new order from the OCCE changing the spacing of your unit assigned to the particular well. Ask them if there has been an order and check the OCCE website for that information. If they have given you no explanation, they need to before you accept anything. It could be in the amended division order. But make sure you understand it before you sign anything. Good luck.

Rick Tatum


You do have a good reason to ask for that portion of the title opinion that pertains to your acreage. Then you will have it for your records. You should match that to your records and if there is a discrepancy, then keep asking questions. The formula for the decimal interest is: net acres/spacing acres x royalty x % perforated in your section It is quite possible that they made an error in the beginning. I have had that happen. If they have overpaid you for years, don’t be surprised if they decrease your future payments until the difference is made up.


I don’t know anything about the oil business ,royalty’s and landowner I get a check about every three months for in the average 10 dollars and they want me to sign another lease adding two years and they want to give me 30 some dollars that seems crazy to me,it has to be worth more then that for pumping oil off my land,i think I need an attorney ,I live in Washington and my land is in Carter county Oklahoma ,I don’t know the relatives that are involved ,I don’t really know anything ,but get a totality check for 10 dollars every 3 months seems ridiculous.i am refusing to sign a new lease and I want them off my share of the property.What can I do?


Go back to your original lease. If it has a clause that they can extend it for two more years, then they can. If there is not a clause, then that is a different story. There is quite a bit more interest in Carter County now is certain areas, so that is encouraging. You may get some horizontal drilling. If you post the section, township and range, I can see if that is heading in your direction.

Usually, your original lease does not “die” until production is not long viable on the lease. $10 is getting pretty close to that uneconomic limit. Is this a new company wanting to lease or the original company? I usually do not extend any lease and I let it die a natural death. You need a bit more information before making that decision.