After we sign the division order and sent it to the oil co.,how long before we get a check.
This is on an existing producing well ( producing over 5 years), Continental oil co. has the well,
Thanks
P,S, I also have to deal with Petro Hunt on another well, same question with them. This well has been producing for many years
Did the division order say whether your pay status was pay or suspend ?
It didn't say anything
assume suspend ,they were waiting on probate transfer.
James O'Donnell said:
It didn't say anything
If the probate hasn't been completed that would explain much. I think they will pay you when they have the court documents saying you own it. You have probably already submitted copies of everything, so they know you own it but they are waiting on the courts rubber stamp, because they can.
Probate is complete and doc's sent to both oil companies. That is why they sent division orders. I am just tring to find out when I can look in the mail box for a check.
In that case I think you should ask exactly this question of the operators of your wells. If the probate was done in ND you should be set.
James O'Donnell said:
Probate is complete and doc's sent to both oil companies. That is why they sent division orders. I am just tring to find out when I can look in the mail box for a check.
Thought this was an imformation forum. Tring to get information from oil co. is like tring to go back in time.
I quess nobody on this forum hasv ever signed a Division order from Continental oil and received a check. Or they forgot how long it took them to go the check.
r w kennedy said:
In that case I think you should ask exactly this question of the operators of your wells. If the probate was done in ND you should be set.
James O'Donnell said:Probate is complete and doc's sent to both oil companies. That is why they sent division orders. I am just tring to find out when I can look in the mail box for a check.
Mr. O'Donnell,
I wish there was a simple answer. It is different for everyone. There can be hundreds of interest owners in a single well, so there is plenty of opportunity for delay.
A division order is usually sent within 90 days of a well being completed and payment should follow fairly quickly (30 days or less). If you're in a state that allows a "confidential well" status, it could be much longer. In North Dakota, a well can be held on the confidential list for 6 months.
Here is another factor, somewhat detail-oriented: They only cut (prepare) checks once a month. Suppose the company cuts checks on the 20th of every month, based on pay status codes entered 3 business days before the 20th. Suppose, in my example, that 3 business days before the 20th is indeed the 17th. One scenario might have the Land Dept finishing their review and approval of your paperwork on the 16th, at which time the employee changes your code from "suspense" to "pay" status, in which case a check would be mailed to you 4 days later, on the 20th of that same month. Another scenario might have the Land Dept finishing review/approval, and changing your code from "suspense" to "pay", on the 18th of December, in which case you miss the Dec 20 payout date, and your check won't be mailed until Jan 20th.
The royalty relations dept employee might be able to "easily" answer the following questions:
a. When do checks get prepared and mailed.
b. How many days before the preparation date does the owner have to be changed to pay status.
c. What is my current pay status, am I still in suspense, or have I been changed to pay status yet?
d. How much are you holding for me in suspense as of right now? How many months royalty income is that?
The Land Dept would be in charge of reviewing the paperwork, and those employees are generally harder to reach. I have encountered some companies where the Land Dept employees don't answer calls. You have to leave a voice mail or send an email and then wait for them to call you back. The Land Dept is the department that would be able to tell you how they are coming in their review of your paperwork, was there anything else that they needed, have they come across any problems, etc. It may be harder for you to get this kind of information.
Thank you for the answer I was looking for. Very detailed -and helpfull.
Odd thing happened-- Petro-Hunt sent me a check and I never signed a divion order (they never sent me a divion order), Still waiting on check from Continental Oil. Signed their order Nov.23ed, Perto Hunt check was the full amount and very detailed paperwork.
Since they can not require you to sign a division order in the state of ND, I think you just had an experience of how things are supposed to work. Come to think of it, that does sound odd.
James O'Donnell said:
Odd thing happened-- Petro-Hunt sent me a check and I never signed a divion order (they never sent me a divion order), Still waiting on check from Continental Oil. Signed their order Nov.23ed, Perto Hunt check was the full amount and very detailed paperwork.
My sister informed me she has an email from Continental oil, a deposit will be made in 2 days. I didn't request direct deposit and have not heard from them. She lives in Texas and I live in Florida. I am exspecring a check by Jan 4th. So, 30 -60 days seems yo be the answer to my question.