I received a Division Order with these terms: PACER%20DIVISION%20ORDER%20BACK%20001.jpg
I've never been overwhelmed by so many provisions which give the operator such authority. It also seems to trump any lease agreement terms that may have been previously negotiated.
Any thoughts out there? I really don't want to sign this one!
Thanks-Rosemary
That looked like an oil purchasers division order and not an operators, to me anyway.
If I received such a division order from an operator, I would send them my own, with the content being the absolute minimum required by law.
You must be right since in the letter Pacer indicated that it will be purchasing oil on a lease that I have an interest in. Is this standard language for a purchaser's Division Order? It appears to have many loopholes and opportunities for reducing my monetary return.
Hi Rosemary,
The first thing to know about division orders is, you are not required to sign the division order, at least not anytime soon. Take your time, do your homework and don't let them bully or pressure you.
Just a gut reaction but that amount of legal gobbledygook cannot possibly be good for you.
Cheers
State? Texas has a DO form mandated by law they are obligated to accept.
I never signed my division order because I wasn't sure it was correct and the oil company landman could never explain it to my satisfaction. After 4 months or so, I started receiving my royalty checks anyway. I don't know if this is common or not.
Oklahoma, Creek County.
Wade Caldwell said:
State? Texas has a DO form mandated by law they are obligated to accept.