If you are in Texas, you have to sign a division order in order to get paid. Most other states, you do not but you do have to return a W-9. Do you know your section, township and range for the Devon paperwork back in 2018. I can look up and see if the well is still producing.
Will check when I get back home that’s were I have the paperwork
Curious how you give up mineral rights. If the DO states it does not modify or amend the underlying OGL, then what rights. ACH should only authorize a direct deposit, I would be shocked if a bank would issue a claw back refund.
The direct deposit form is a legal document. Quite a few companies have forms which specify that the company has the right to take back funds and by signing, the mineraL owner has authorized this withdrawal. Bank will treat like a credit card payment and allow the deduction. Then it is a civil issue between the parties. Some forms speicify that no funds will ever be withdrawn and others are silent on the point. I have asked companies about deleting the sentence that funds can be withdrawn and they have all said no on the grounds that they would never abuse the right by withholding too much.
NARO had a really good webinar on Division Orders in OK, so was using that as a reference. Not giving up mineral rights per se, but perhaps some other subtle rights. Been a few sleeps since I listened to the webinar. I have seen some horrible DOs which tried to change the lease, add or take away from clauses, etc.
I am not doubting that you have seen this, but I have never seen it or had it applied by any of our more than 100 purchasers. If that ever happened with my bank, my bank and I would have a very stern conversation.
So you have slept since then or did the webinar put you to sleep? The model NADOA form, which many use in some format, specifically states it does not amend any OGL. I would be suspect of a DO that made some attempt to amend and the Purchaser that provided the DO. Always a good rule, read before you sign or resign because you were to lazy to read.
The webinar was quite useful. The NADOA form is good for states that require a DO. Use it all the time. For OK, just not necessary as a letter in lieu and the W-9 are sufficient.
Waits 34 34-20N-1W 1 WH
Section 34-20N-1W noble county, Ok
Last production on the Waits 34-20N-1W was December 2015.
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I think I am in a similar situation as you. According to GHO Division Order they show one of my wells in Payne County, but it is actually in Logan County. Unfortunately, I do not have any of the Contango oil and gas statements (to see if it was Contango’s mess-up), but I do have statements from the prior operator, WhiteStar, which shows the correct county.
Pam - my mineral interest was actually on the Logan County side, but abuts up to the Cimarron River and how it flowed, it ended up on the Payne County side. I can’t tell you specifically how or why, but that is what happened. Can you look up your statements on energy link?
Is your actually well on the Logan County side?
Hmm, that is interesting and thank you for responding! When White Star was the operator the well was listed in Logan County. But GHO has it listed in Payne. I have never been to the property or the well as I live out of state. The well is: Hudson 36-19N-2W.
Also, I have interest in a different well but with the same legal description above, but it is reflected in their list as in Logan County (and that is where I have always known it to be.)
I think I have logged into Energy Link once years ago, so I’ll try that route.
Thank you for the Letter! I am new to this forum and also got the DO from Great Horned Owls, LLC. I am in Oklahoma with the well in Oklahoma. IF I do want to get paid via direct deposit and not a mailed check monthly, can I modify (cross out) the “initiate adjustments” sentence, and it still be valid?
Thanks!
Brent
Having not seen the paperwork, could not comment. Normal adjustments are made on the check statement and come out of the check or are added to the check. I would not let my bank let someone into my account, but if you give them the permission and the routing and account number, they may be able to claw back over size payments.
Just because you modify a document that does not mean it is accepted by the other party.
Hi Martha -
How often does this happen on a claw back over size payment? Just curious.
Just depends upon what adjustments the company needs to make to past royalty payments (usually due to title, price or meter corrections). If the adjustments are minor and just a few dollars that are within the realm of what the check might be, that is usually accomplished within the check and you get what is left over deposited-those are quite common. I have had some that were years of adjustments and were in five digits. They withheld payments for a few months until the entire amount was reclaimed. We did not received any royalties on any well by that operator for months (with no documentation until I requested it.) If I had signed a direct deposit with claw back, they could have gone into the bank account to try to get it. Since our family distributes the royalties every month, that would have been a disaster for multiple families and overdrawn accounts and fees. Just the reason that I do not allow the claw back clause. Some operators do not have it in their ACH paperwork and others do. You need to contact your bank and see what their policies are.
Wonderful information! Thank you Martha!!