Once again I have received an "extended" Division Order and am suspicious of this payment sentence:
4. "Company shall make payments to Owner(s) sent by regular mail at the address(s) shown above. The amount of each payment will be Owner's interest percentage share based upon the value paid by Company to the Operator or operating representative of such production, net of, as applicable, any production, severance, occupation or any other taxes levied upon such production or required to be withheld."
This statement appears to convey to the ability to make many unseen deductions before my share is calculated. These deductions could be made between Company (purchaser, I presume), and Operator who may not be at arms length.
This is in Oklahoma and rather than to cross out this and other unfavorable terms and return this DO, I'm considering sending in the standard form.
Am I correct to assume the terms are unnecessary and even inappropriate?
Thanks--Amy