I just received a D.O and "agreement" from Coffeyville stating "The operator of your lease(s) has chosen Coffeyville as the new purchaser of crude oil effective on the date specified on the enclosed Division Order." The enclosed is titled Oil Division Order and Agreement. Normally my division orders are titled just that "division order" and include all oil, gas, etc.
This is specific to oil and also adds the "agreement" in the title. What I don't like is the line above the signature line which says "the owners expressly waive any claim against CRRM (Coffeyville) for any and all amounts owed to the owners from any third party for oil produced from the lands prior to the effective date hereof." I am new to some of this stuff. There could be something I haven't been getting paid on and just haven't checked on and if so, by signing this I have waived my right to unpaid royalties, right? Is this a standard clause? I have never seen it before on a regular division order and what makes this different? Property is Section 3-2s-3w in Carter County. Help please?
I don't see a problem with that statement. You would not expect them to pay for oil that someone else owes you for. However, I would prefer to send them a Signed Standard NADOA division order and try to make that fly.
in Oklahoma, a division order executed after July 1, 1989 cannot change the terms of the lease by itself anyhow. See Okla Statute: §52-570.11 Regardless, I send in the standard NADOA form instead.
That's just what I was thinking might be the solution (the NADOA form). I have used that with them and others before but this seemed to be something other than a regular D.O. I called and they said it may or may not fly depending on the person who approves them... I wasn't really reading it and as you pointed out, it just clears them from paying someone else's debt. Grasshopper is learning slowly but surely. I just need to slow down.
Rick Howell said:
I don't see a problem with that statement. You would not expect them to pay for oil that someone else owes you for. However, I would prefer to send them a Signed Standard NADOA division order and try to make that fly.
in Oklahoma, a division order executed after July 1, 1989 cannot change the terms of the lease by itself anyhow. See Okla Statute: §52-570.11 Regardless, I send in the standard NADOA form instead.
Elizabeth,
Make certain that the lessee operator notifies you in writing that Coffeyville is authorized to seek a division order from you. Probably not a problem but would hate to have your funds tied up due to a "misunderstanding". Under the terms of your lease, you would have to do the same to make an assignment of your interest. Trust everybody but always cut the cards.
Gary, should I call the operator and request in writing that they have selected Coffeyville as their new purchaser? Phillips 66 was the previous payor but don’t know if they were the operator or not. .???
Gary, this is sec. 3-2s-3w carter cty. Maybe you can find out the operator and well name?
LIZ, Section 3 has over a hundred wells in it. Was there an API number or a more detailed legal description on the DO? If you want to send me the info at "gary.hutchinson@comcast.net" I will be happy to look deeper into the well data.
Elizabeth Kirkpatrick said:
Gary, this is sec. 3-2s-3w carter cty. Maybe you can find out the operator and well name?
Gary, it is NW/4 NW/4 of 3-2s-3w if that helps any. .its Pruitt 1-7, lease numbet 631307…I just don’t know if this is a new well as I have some other pruitts. But they are named as pruitt tr 17, etc. So this is still not a normal d.o. like others…I called linn energy, the operator but they have not returned my call re request to change purchasers as you advised to get in writing…thanks