I received my division order on the Ambassador Inn 19/31 DM 1H in Custer County, OK. I have mineral rights in section 19 & section 30. According to the division order in Section 19 with 53 acres Decimal Interest 0.00561833. In Section 30 with 40 acres Decimal Interest 0.00132508. I believe Section 19 decimal interest is correct but not Section 30. Based on the 1,886.68 total spacing size and my 1/5 (20%) lease royalty. For Section 30 this decimal only credits me with 12.5 acres. So I’m missing 27.5 acres worth of royalty credit. Who do I contact about this discrepancy? Do I need a lawyer. Thanks
Contact the Division Order group from the operator and ask about their equation for the section in question. They may have found a title issue. Have any deeds and probates that you have ready. Tell them the well, owner number if they have one at the top of the DO. They also might have a person’s name at the top. Ask them politely for a copy of the paragraphs of the title opinion that pertain to your ownership. They may not have found the extra acres or they might know why they are not crediting the amount. Or you might be going off of a lease which has the gross acres, not the net acres. They can walk you through it.
There is no title issue. I inherited this from my father who passed 26 years ago. Both sections have been leased in the past with 53 acres in Section 19 and 40 acres in Section 30. But I’ll try giving them a call. Thanks
The equation for OK is net acres/actual spacing acres x royalty x percentage of perforations in your section.
Ii think what you may find is that each section was spaced at 640 acres, but because they are irregular sections, they may be a bit different on the actual acres and you have to calculate each one separately. Also, the well was multi-section with about 33% in each section. There will be a final order with the amount, so that might be on the DO.
For example, 53/640 x .20 x .33= 0.005465625 which is pretty close to what you have on the DO for section 19.
For section 30, if you had 40 acres, it would be 40/640 x 20 x .33=0.004125, so it does seem off. 12.5/640 x 20 x .33=0.0012890625, so closer to what they have. Contact the DO analyst to see why they think you have less acres. Sometimes even though there is a deed and a probate, the title issue is several generations back. The operator has done a title search all the way back to state patent, so they may have useful info for you.
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