Division Order Interest

A few years ago I received notification that I was due royalty interest based on land my family had purchased in Glasscock County, Texas. I received several small checks and about a year ago, I received new division orders from another company. The interest allotted to me was different. I did not sign the new division orders because I knew they were wrong. I began sending emails to try to get this resolved. I have since spent several hundred dollars providing them with certified copies of the family wills that pertained to my portion. It has been over a year now and they still don't have it all sorted out and will no longer respond to my emails. I need advice on how to proceed. What should i do from here?

Teresa,

It's past time to get an attorney involved. JUST MY OPINION

Clint Liles

That’s where I figured it was heading… Any idea what type of lawyer would handle something like this?

Teresa,

I suggest Wade Caldwell. He is a member of this Forum and has a good reputation with numerous Forum Members.

http://beclaw.com/attorney.php?pg=g-wade-caldwell

Clint Liles

Great! I appreciate the referral. Thanks for the help.

You should also send a certified letter demanding payment for the uncontested portion of your royalties and for a copy of the drilling title opinion and/or the division order title opinion relating to your title to see the specific issue(s). Specifically ask whether the issue is 100% of your title or only relating to a portion of your title or whether it relates to the title of other heirs. The oil company is not supposed to withhold payment from you if the issue is the title of third parties. Also, note that you will be due interest on the late payment of royalties, or the precentage of royalties, for which there is no title dispute. Demand a written response and explanation within 30 days. Does your lease provide any remedies or rights relating to failure to pay timely royalties? I realize that you have email correspondence, but certified mail is an important step in this process to force a response and action by the company.

Those are questions I don't know. I also don't know how to get those answers when the only contact I have won't return my emails. Thank you for the suggestion of sending a certified letter. I didn't think of that. I will give that a try.

Teresa -

The difference in the decimal interests may be due to your lands being included (or partly included) in a different Unit or a Unit of a different size.

If you will post your legal descriptions, I will look up your area and see what possible Well(s) you could be included in.

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

And a good one it is. It is time for lawyer to lawyer talk. There may be a reasonable explanation for the delta but you're not going to get it from an accounts payable clerk.

Gary L Hutchinson

Minerals Managment

If only it were that simple........It's very difficult to try to explain all of this, but the original company I received division orders from had me collecting interest from 2 family members; the new company only showing interest from 1. Also, during my research, I discovered there were funds "in suspense" for another family member. This particular family member had no children and I am the only living beneficiary listed in her will. I am not sure how all of this works, but would think I would be entitled to her portion as well. I wasn't sure if I should list the legal description here so I sent you a request so that I can send you a private message with additional info. Thank you very much for your willingness to help.

Teresa, I don't have much to add to your immediate situation but your ownership is public record if anyone cares to research it. Posting your legal descriptions may lead to some offers to buy your rights but you can throw the offers in the trash if you wish, I use mine to start the barbecue.

My point is the more information you give the people trying to help you, the more and better help you get. The potentially bad, or just hard to deal with people already know where your rights are.

Duly noted ..........Thank you. Please forgive my ignorance with all of this. I just haven't had much help understanding everything.

The legal description as noted on my division order is SEC 188 BLK 29 W&NW RR CO, Glasscock County, Texas.

Nothing to forgive Teresa. I have found that about 98% of the time secrecy favors the lessee or operator and is actually against your best interest. If I don't learn something new every day, it's not for lack of trying I assure you!

Teresa,

I looked up your Section and there have only been a few wells drilled in it (no Horizontals) and only two are presently producing, the Trilogy Sydney Nos. 1 & 2.

There was a third Well that was drilled by Laredo Petroleum back in 2012, the Bednar 188 No. 1. It wasn't very spectacular and was Plugged in 2015.

You showed up on the Mineral Tax Rolls for the Bednar 188 No. 1 in 2014, but by 2015 it produced so little that your interest wasn't taxed.

Is this Laredo Petroleum Well the one your are curious about?

Charles

Laredo Petroleum was the company I initially received checks from. The division order I am questioning came from BML who told me the interest on the new division order was given to them by Trilogy. I was told I had to have the people at Trilogy correct any discrepancies. I have sent them all of the family wills that should pertain to my interest. I have also had all of the wills certified and filed with the county clerk in Glasscock County. August 16 was the last time I heard anything and was told they almost had it all figured out and they would contact me when they did. I have received nothing since then and that’s where I’m at…

You would have needed to file the certified copies in Glasscock Co. first, then obtain certified copies from Glasscock Co. and send those to Trilogy / BML, but at least they have acknowledged that they are working on it.

The middle of August to the First week in November is quite a wait, but in terms of Division Order Departments 90 Days isn't anything unusual. They have tons of records they have to wade through. And with the downturn in the industry we are all experiencing, whoever you were in touch with before may not even be with the company any more...

Trilogy's wells are on a lease that appears to cover all of Section 188 except the SW/4. The SW/4 was where Laredo's well was located.

Do you own interest in the entire Section or just part of it?

According to the deed, my interest is in the West 1/2 of Section 188, Block 29..........At least that's what we can gather from the paperwork.