In 1972 Exxon and Sun Oil (also Hummle) drilled/found oil in my hometown, Florida. The Well is still producing. According to the Oil and Gas Division Orders by Sun Oil and Exxon, my Decimal intrest is .03164342 and my unit intrest is .00396339. I have oil checks from both also showing these amounts. When oil production slowed they sold the plant to Desoto Oil (@ 1989/90) who slowed production briefly and when they started back, production was slow. We did not notice my unit amount changed (changed to .00038534. Desoto sold it to Petro (Alta Mesa) and they have increased production some (@ 7500 bbl day). the unit intrest has stayed the same. I didnt look at my little checks any more because I jst thought they were not pumping much oil out. I NEVER sold any mineral rights. How can they lower my decimal intrest in the well. I have tried to find an attorney in florida that handles Mineral Rights BUT THERE ARE NONE!!!
Help
Hi Sarah, My decimal interest has changed/lowered too. I'll be interested in the responses. Thanks!
Sarah, I don't know anything about your specific situation. However there are a couple of reasons your decimal interest might have be reduced.
1. Your Unit was increased in size. If so your percentage would be reduced within the now larger pie.
2. The operator introduced a new secondary/tertiary recovery method (water flood, CO2, etc...) and in the process reduced all participation factors to reflect their increased recovery costs.
3. There was a paperwork error when the operators of the Unit changed back in 1989/1990.
Unless someone here has an interest in the same Unit I doubt you'll learn why this happened. There may be more reasons than what I posted above as to why your interest was changed. Yet if you didn't sell a portion, something did change or they made an error.
I'd start by contacting the current operator (Petro/Alta Mesa?) and ask how your Unit Participation Factor was derived. It may be best to inquire via a certified letter why your interest was reduced, and how it is currently calculated. It may take awhile but if they're a reputable operator they should be able to respond with an answer. In the meantime gather together copies of your deed, and the old Humble, Exxon, and Sun check stubs. I hope this helps.