Division Order Oklahoma - am I required to sign to be paid?

I received a Division Order recently on some minerals we own in Major County. As I general rule, I do not sign the Division Order as most Operators put language to the effect that I must warrant title, ratify other oil and gas leases and amendments…ect. It is my understanding that Oklahoma Law/Statues do not allow an operator to withhold payments for royalty to an owner because they have not signed a DO. As a royalty owner who has Marketable title, I am only required to provide Name, Address, Federal Tax Id and notification of change of ownership. Am I correct in the understanding of the law?

Leslie: I agree with your assessment although it may cause some delay in payment.

Pursuant to Hull v. Sun Refining and Marketing Co., 789 P.2d 1272, 1989 OK 168, and subsequent cases the payment of royalties cannot be conditioned upon the return of a division order. Failure to pay will result in the imposition of statutory interest.

Also, pursuant to Title 52.Oklahoma Statutes Section 570.10 - Proceeds from Sale of Production It is requested that proceeds totaling less than One Hundred Dollars ($100.00) but more than Twenty-five Dollars ($25.00) shall be remitted monthly. Amounts less than Ten Dollars ($10.00) shall be remitted annually.

This is not legal/tax advice, this communication does not create an attorney client relationship.

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