Garvin 19-01N-03W Sheriff Garrett 1-30-19XHM Continental Resources
I received a Division Order from Continental Resources with an NMA amount that I believe is not correct. I wasn’t able to connect with a person by phone. I did email and ask them to review and advise. Reply was for me to provide supporting documentation that has been recorded in Garvin County records.
I never returned the D O. They did send a check a couple of days later.
My questions: If I cash the check, does that mean I agree with the terms on the D O?
Once I provide them with proof, will they pay the difference I did not receive on the first check?
The check I received is about half what my cousin received (our fathers were twins….same mineral interests divided in the same way).
Thank you,
Is it possible that your cousin had a different royalty rate in his/her lease?
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
We negotiated the leases together. The only differences on the leases were our names. All the details were identical. Thank you
Maybe I put the wrong Title on this. I was only supplying history. I’m not looking for help with the dispute. I would like to know if I deposit the Royalty check….does that mean I accept the terms of the Division Order?
No. If you have a legitimate interest that is larger than what you are paid on and that interest predates the revenue dates being paid, then no, you are entitled to back revenue.
THANK YOU, Todd!! That makes me HAPPY!!!
Carmen, do you have more siblings than your cousin? If your uncle only had two kids, but your father had four children, then the cousin’s interest would only be split in two from their father, while your interest would be split four ways.
Tim, that is a good point. In my family, it’s my sister and I. In my cousin’s family, the mineral interests were divided between two sisters….so my cousin and I have the identical situation. Thanks.
There is always the risk that cashing the check will be seen as acquiescence to the calculation. I suggest you ask for their calculation of your net mineral acreage, the spacing unit size, and your royalty rate. If this is a horizontal well, you need to know the % covered by your interest.
From the sound of it, there is mistake on yours or your cousin’s calculations.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
Richard, I completely agree that there was a mistake. I did email and ask how they arrived at those numbers. The reply I received was for me to prove them wrong. Their DO did include a formula (about 9 lines of size 10 font) on how to do the calculations. I found the proof for my numbers….no idea how they arrived at theirs. Thanks.
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