Divisiion Order request when records show no payment in approximately 5 years

Oil and Gas Leasing Help
1

I received two letters asking me to execute new division orders on wells that my records show have not paid anything since 2008. (It is possible that I have been paid since then but I don’t think so.)

I spoke to the representative for the company requesting the new division order. She claims they bought the wells from a company of which I have not heard but she was provided with my contact information from that seller.

Does signing a new division order, on a very small interest, when no payments are shown to have been received in over 5 years, ratify the underlying lease and thus allow the operator to hold the land or does failure to pay royalties at some point void the lease?

Any suggestions are appreciated.

2

It would depend on the language, or lack thereof, in your actual lease.

3

Has any production occurred? I would verify that first from a state website like the Texas Railroad Commission. The next question is, if they have produced or not, is the lease still valid according to the terms you agreed upon? I wouldn’t sign anything until I know the answer to both of those issues. If production has occurred and you have not been paid, I would start by asking the new lease operator for assistance in getting those funds before signing anything new.