Couple of Questions about Division Orders

I have my mineral rights leased through Continental Resources. According to the North Dakota Oil and Gas GIS map server, another company has drilled on my mineral rights acreage. The company who drilled on my mineral acreage won’t respond to my inquiries.

  1. Who initiates the Division Order process?
  2. What is Continental’s role in the Division Order process? 3.How would I find information on existing or pending Division Orders?

Maybe the pad site is in your section, but the perforations are not in your section, meaning maybe they drilled south of your section? Without knowing more details it is hard to say, possibly they were granted a smaller spacing order and your acreage lays outside of it.

Answer to question 1). The operator initiates the division order process after they have completed the well, in Oklahoma they generally send division orders out 4-5 months after the well has been completed and had its first sales. Answer to question 2). Considering continental is the operator here, they are the ones who run the title to make sure they are paying the rightful owners that make up this drilling unit. Answer to question 3). There is not a division order database that is open to the public, division order data is proprietary data to the operator. You will only see a division order when an operator has drilled on your property, generally 4-5 months after completed/1st sales.

Actually, Whiting is the company that drilled the well. The pad was on Whiting mineral rights section, but the horizontal leg was drilled on the Continental (company I leased rights to) mineral rights section. I just was wondering if Continental would be looking out for me. The well was completed in May so I will wait a few months. It seems strange that data base on Division Orders is proprietary.

Thanks for your response.


I just re-read your initial post again, what i’m betting happened here was that Continental leased you and they are planning on participating in the well, but not operating it. Continental would pay there proportionate share of the cost of the well and this other company would drill it.

Question 1). The company that drilled the well will be response for the division order Question 2). If Continental did not drill the well, they will not have a role in the division order process Question 3). There is not a general database for division orders, a division order should only be viewed by the operator and the mineral owner considering it shows what your proportionate share of this well is. Continental will not be going to bat for you considering they aren’t the operator. Operators in North Dakota have 150 days (Essentially 5 months) to issue out payment from the date of 1st sales (which is usually a couple of days after completion), otherwise they will have to pay you 18% interest per annum until paid. With that said, if they completed the well in May (find the date of first sales), then they should be paying you sometime in October and you will generally receive a division order 1 month prior to payment.

It is also possible that you are leased to CLR in a CLR unit, but the adjacent unit is a Whiting unit and they pooled the units to drill overlapping 2560 acre units, so you will get most of your production revenue from CLR, but have a Whiting leaseline well. I know this is the case with the Sefolosha unit in 155-99-14/23 that just had the Whiting Peterson leaseline well drilled next door.

Thank you. This is the exact unit I am talking about. I am not sure how you came up this information. I am just frustrated I cannot find information on it. I will contact CLR (I am leased with them) this week. Thanks again for the information.

No problem. For better or worse, I know a dangerous amount about the Bakken :slight_smile: and in Williams County, there are only but a few areas where CLR abuts Whiting with new Whiting leaseline wells. I was also looking at that unit last week in connection with a potential acquisition so it was fresh in my mind. Note, that Peterson well has only been producing for now two months and Whiting has six months to put you into pay status under North Dakota law, so it may take some time. CLR will not have a ton of answers for you on this, but prob better off reaching out to Whiting if you have any questions.

Thanks again. Part of the problem is Whiting would not talk to me, since I did not have mineral rights on the Peterson acreage. My mineral rights are on the Sefolosha acreage. I know it will all work out, but curiosity killed the cat.

Owner relations departments can be persnickety about talking to mineral owners who not yet in pay and usually are not super helpful. FWIW, the Peterson well is producing really nicely for two months thus far. I think its great to be curious about what you own and when you expect to get paid on what you own. Always happy to help.