Division order received: Interest?

Received division order for 5,17N,4W containing 321.6 acres with .00155473 interest. I have 4 acres. I don’t remember getting any lease offers on this that I could have negotiated at least 3/16. Just got a noticed that they getting permission to drill horizontal. I thought maybe you had some options on a division offer. But, none is offered so looks like I’m stuck with 1/8 interest. Is there any way to change the interest and how to make sure I’m getting a good interest on future royalties I have.

Which well is the Division Order for? It is quite possible that this is just a transfer of operator and this is an old lease that was at 1/8th.

Well number 05045.01. Property name: Judge Parker 17-04-05 1H

There was older production in section 5. Were you already getting royalties on that section? If so, you were held by an older lease. What is your legal inside of 5? Which quarter section were you in?

I’m sure the legal says 1/8 It sits on the SW quarter of section 5

I noticed that the well was started in section 8 and the horizontal is in 5. Would that make a difference as far as being associated with an existing well in 5?

There were two producing wells in the SW4 already-Blackman 1 (oil) and Blackman 2 (gas). Are you getting royalties from them? They were wells from the 80’s so tied to an old lease which is probably holding the new well. Not many of those old ones had depth clauses on them, so the deeper horizons are held. I have a few of those myself.

The new horizontal well was spud just over the line in section 8 so they could get the maximum perforations in 5. You have to look up the well in section 8 on the OCC well records since the surface location is there, but all the perf belong to section 5.

Thanks for your help with this:

The deed doesn’t mention any particular interest. It mentions any pooled acreage benefits.

I could possibly be getting a payment from the Blackman well but not sure. How can I tract that down? I get checks from several different companies.

Your checks have run statements attached to them. Those statements list the properties for which the company is paying.

I would appreciate your thoughts on the following:

I emailed the oil company and asked why I was stuck with the 1/8 interest. Was it because of a previous well and this is their reply.

“Since your wife is the mineral owner, I am unable to discuss much with you. What is of public record is that a lease dated January 3, 1977 is what the Judge Parker well operates under. I don’t have any information on another well in the area as Chisholm only operates the Judge Parker”.

Any records I could find on Judge parker is all under Sec 8. Couldn’t find any well from 1977. The horizontal is in Sec 5 where I have an interest.

Test. Look up the Blackmon wells. Since those wells were under an old lease, they hold your section five acres at that royalty. Given the date, it is likely to be 1/8th which you cannot change.

Judge Parker spud in the NW corner of 8. It goes north into section 5 and all the perforations are in Five.

Out of the 10 wells listed for sec 5, Blackmon 2 is the only well that I can find I get a check for. Is that because my interest is only for a specific corner SW4? Not sure how that works.

My check is from DCP Midstream but when I look at the info for that well it says Operator is Plotner Oil company. DCP is not listed. I don’t understand that.

Is there a way to find out what the production of Blackmon 2 is. When I click on production I get nothing for every year I try.

In the last 2 yrs I’ve gotten one tiny check for that well, but I guess as long as it is still operating then I’m stuck with 1/8th interest.

For vertical wells, you will only get payments from the wells which are spaced and include your acreage.

I see production on the Blackman 1 at least through December 2018 and on the Blackman 2 at least through May 2. if they were still producing when the other well spud, then you are probably held by the 1/8th. That acreage is also part of the larger spacing for the horizontal well, so the previous lease is still in effect.

https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php

Thanks for the info on where to find the production that let me verify who I was getting a check from.

How do I confirm the royaltie acres? It is section 0517N04W:SW/4 I don’t know what SW/4 really means I have down that it is 4 acres The royalties was pasted down to my wife from her mother and was split between her and a sibling so originally it was 8 acres.

I little more info: Her moms acres was also split between her an a sibling. On the one I asked about I can see where that is 160 acres/2=80/2=40 thus 4 acres. But I have another on that is Sec 25-18N-04W -SW/4,that I have down is only 1.0667 acres. That doesn’t make any sense.

Your second one may have a different history, may have a river involved which can cut out acreage, etc.