Would anyone happen to know what, if any, time frame is attached to signing a “Division Order” document? I “think” I read somewhere that it can be revoked at any time by either party. Also, to receive “100% of the gas and oil lease income from the OK property . . .” and in an attempt to educate myself and to insure all wells are covered (previously honesty didn’t seem to work out) I did go to the Oklahoma Corporation Commission web page and printed out all of the well info I could find however with so many different API #s, no operator name on one, different well name on same legal description, different quarters and different surface footage for same well name, etc. it became overwhelming. Wouldn’t a Property Warranty Deed offer more protection or would it not cover any and all existing wells? I cannot afford to learn another hard lesson for being too trusting. Also, the Division Order I received is from 1 operating company however for the same legal description I found not only their name but also a second operating company.
Thank you in advance for any input, suggestions and or direction of where to go (oh, that sure is an open invitation lol) as I am literally at a loss right now.
I think you’re going to have to break this question up, or provide some more background. However, let me suggest that a Division Order can be revoked. However, then that revocation would probably give the company some concern as to what you’re trying to accomplish. Also, not sure what you’re trying to say regarding a Warranty Deed. You might get two division orders for the same property, if one is purchasing and distributing the oil revenue, but a second company is purchasing and distributing the revenue for gas produced from the well. Possibly.
Thank you. Bottom line is by default the Court granted me all oil and gas income from the farm for the remainder of my life; the Division Order I received from the operating company is a cookie cutter form and does not specify what happens when the owner (ex husband) passes in that the royalties are suppose to continue until my death. I have already learned a very expensive hard lesson that “handshakes” (i.e., taking someone’s word) no longer means anything. When he passes and the farm is sold I was Just trying to find a way to insure I continue to receive royalty income to supplement my SSI.
I am not speaking as a lawyer (which you probably need to contact). The Division Order is a standard contract from the payor to the payee to make sure that the right person is being paid that has title to the royalties. Your ex may have owned the mineral rights only or the mineral rights and the surface rights to the farm. You need some clarity on that point just for understanding. You may need to file the divorce decree in the county courthouse so that your title to the royalties is clear for as long as you live. You need to ask the attorney if you have the mineral rights as long as you live and then they revert to someone else, or if you only have the rights to the royalties that pertain to a particular lease or only a particular well-that can be a very important item to know. Keep in mind that the first check you get from a new well is the largest that you will get since it will cover several months of royalties. Every check after that will be for a lesser amount of months. On the Division Order, I usually mark out $100 and put in $25 so I will get more frequent checks. Wells decline naturally, so the volume will decline each month and your payments will depend upon the going rate of oil and gas prices during the month of sale. Don’t count on large checks for long.
Typically, the Division Order recites who is to receive the income, now. It usually doesn’t specify that you’re a life tenant. They put the onus on the remainderman to speak up after the life tenant passes away. As long as the DO gives the correct net revenue interest, and you’re receiving the check, I wouldn’t worry too much about it. I agree with Martha that a certified copy of the divorce decree should be recorded in the county clerk’s land records.
Thank you so much for your reply. He owns the minerals rights and the surface rights. I received " . . 100% of the gas & oil income from the Oklahoma property until her death at which time the mineral rights revert back to the personal estate of . . . " I will be obtaining a certified copy of the necessary documents and filing them with the appropriate County but how should I notify the existing drilling company and a 2nd company on file with an expired permit? Thank you again for your input
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