Custer County OK, Well completed!


Continental completed our well about a month ago in Custer County.

I wanted to ask about how long should it be before we receive our Division Order?

Also should I have an oil/gas Attorney look it over before signing it and sending it back or does the Lease we have pretty much guarantee that we will get the correct amount of monthly royalty payment?

Also when we do receive the Division Order and start getting paid, will our first check cover the production from the months while we were waiting on the Division Order?

Any information will be greatly appreciated!!

Thank you,
Brian Jones



I would expect a Division Order about 5 months after the completion.

It couldn’t hurt and I would never encourage someone not to have it reviewed.

I compare what they send with a NADOA division order. If there are minor differences, I have to decide if I am going to accept that. Sometimes I make a change on the division order, sometimes I submit the NADOA form. I have done both several times even when they have a cover letter saying no modifications or substitutions allowed. I include a cover letter saying I don’t agree with the terms of their DO and have modified and/or submitted a replacement “for their convenience”. I request to be placed in a pay status per §52-570.10. I will not write my TIN/SSN on the forms, I mark them “See Attached W9” and include one.

Your first check “should” bring you current. Then “not later than the last day of the second succeeding month after the end of the month within which such production is sold” So you should receive Payments for September Production in November.

Be careful. These fractured wells in these tight shale formations have a very steep decline curve. In about 18-30 months they will decline to about 15-20% of initial production. Around 48-50 month you will see it at about 5-10%. After that the decline is much less severe. Budget accordingly!