Just got division order on 3 Wells, but stipulation of interest is being fought. Does this mean the dispute is over or is it just an oversight. Should I fill out and return the division order regardless? Section 20 & 29 block 57 psl a-4442 & a-4446. Thanks Liz
Good question, what if you don’t agree with the division order percentage, do you still sign it
It’s not the percentage it’s the stipulation of interest, half of heirs won’t sign it
Royalty decimal in division order is based on title, royalty rate, net acreage, well acreage, etc. You need to understand this calculation to determine if the DOI is correct. If there is a title issue that requires settlement by a stipulation of interest, then the disputed interest is most likely been placed in suspense and your royalty decimal would be reduced. You need to be sure that you understand the what you are agreeing to by signing and if any interest is in suspense. Oil companies will withhold the disputed royalties from everyone until the title is settled. Sometimes even within families, it takes the filing of a lawsuit to get everyone in line to sign and agree to a settlement. Otherwise they will incur legal fees to respond. Failure to respond could result in a declaratory judgment. The problem is that if you all wait too long, then there will be more deaths or sales and more parties involved and you may never get title cleared.
We have lawyers, but think it’s a Mexican standoff!