Division Order process

This is a great post started last November in our area. ".... signed leases with Antero, wells permitted, wells drilled, months go by (11) and still waiting for Division Order (D.O.) "

Short questions to anybody on this D.O. process: When well(s) are drilled on your property, the trigger to getting paid is begin w/the D.O. -

1) is the D.O.initiated by Antero and is prepared by the State DEP or

2) by both the State & Antero?

3) Does the clock to get the D.O. (and paid) start when the bits are sunk?


4) Where is the State once the well is (being) drilled and production is occurring?

I am also calling Denver/Bridgeport weekly....so many views here by the Wetzel group, so few replies,,,

OK Ancel. Here's how it goes as I understand. First the company will do a title search to determine ownership of royalties in an GENREAL AREA where they want to drill a well. They then plan a UNIT (a section of the GENERAL AREA where they want to drill and produce from) and get approval for the UNIT space and permission to drill from the DEP. They then drill a well and assuming it is producing they do a SECOND title "search" on the parcels that are in that UNIT. Just because you leased to them does not mean that some or any of your property will be in the UNIT. Also I am not sure exactly when they do the second title work, but I suspect they wait till production since why pay the extra costs of the second title work on a dry hole. This second title work is to determine exactly what portion of the UNIT you have royalties in and your percentage "ownership" of the UNIT based on the amount of royalties you own for the piece of land you have in the UNIT. They put this in a form called a Division Order and send it to you. HOWEVER, I understand there is no law (at least in WV) that requires them to sent you one or for that matter for you to actually sign it and return to them. However, if you ignore it, they will just send you royalties based on their calculations, which may not be accurate. You need to find out either through your own ability or an experts (lawyer, accountant etc.) if what they calculated as your royalty interest is correct. So you know, we have over 20 wells with Antero that are producing, some as long as two years and we have not heard the first word from them. We have given it to our attorney and told him to proceed against them in any way necessary to get us paid. Their excuses are varied, including not enough people to keep up with all the drilling and leasing they are doing. We have some wells where we are getting paid and have never seen a Division Order. We had to calculate it ourselves to see whether the percentages were correct. I don't believe the State (DEP) has anything to do with the D. O.

Sorry to hear this about Antero. It does not seem like they are being fair to you.

As strange as it may seem, they are still my favorite company to deal with. They are fair with the lease and terms. Probably more so than any other company. Just wish they would "proceed" at a faster clip!