Division order


#1

I still have not received division orders from Rimrock for Clydedale 1-29SH or Clydesdale 1-29-20UWH. How long does it normally take to get division orders and receive oil royalties from the oil company. Marsha


#2

Typically, it takes five months after first sales to get the Division Order. If you give the section, township and range, that would be more helpful in getting an answer.


#3

And you may actually receive your first run check before you receive the Division Order. Rimrock has done this in a few instances.


#4

A few companies go ahead and send the checks before the Division Orders so that don’t have to pay interest. Then they come back and settle up and discrepancies.


#5

This happened to me on three different Rimrock wells this past year. When they finally start paying, the checks are nice but the check stubs can be very puzzling. It took several months before the division papers came.


#6

S29-4N-4W in Garvin county


#7

I am still trying to figure out one I received in August on the Jennie 1-21LSH. Rimrock has my interest different for gas versus oil and when you add/subtract all of their credits and debits from Oct. 17 to Feb. 18 they equal 0. You can’t get them on the phone to get an explanation.


#8

There are several Clydesdale wells, hence the delay.
Clydesdale 1-19SH. Completion date April 28, 2018. Should have seen DO in October.

Clydesdale 1-29-20UWH Surface location in 32. goes into 29 and then 20. Completion Jan 30, 2018. First sales 3/21/18. This one is online since March 2018. Should have had DO in September.

Clydesdale 1-29-GH. permit Campolina 1-29-20USH active 10/1/18 Should see DO in about March.

I think the reason for the delay was that the OCC had not released the splits for the wells until August of 2018. They need the percentage of perforations in each section before they can issue the division orders since the decimal is dependent upon the percentage number.

Each of these wells will have a slightly different decimal assignment since each well has a different length of the lateral. You get statutory interest if they are late, but you may have to ask for it.


#9

Darla, some of our really old leases have different royalties for oil versus gas. Drives me nuts! Have to go back through decades of files to find that original lease and see what they were doing. On the flip side, those old leases were usually gross proceeds, so no post production charges should come out at all. Then I have to fuss if they are charging.


#10

No…recent lease and the division order has the higher number.


#11

That is why I don’t do the “enhanced deductions” clause. No deductions is much easier to defend. Given the complexities of back metering gas volumes, that is hard enough to track. Then throwing post production charges on top is a nightmare to track.


#12

I agree. It’s just getting harder to find a company that will take a no deductions lease. This one was a recent purchase and leased before I bought it. I don’t even think it had an exhibit on it.


#13

I’m getting a deduction for “dehydration” on production from XTO (also just got a class action settlement for their failure to pay royalties–I don’t think it was related to this). I looked at the DO signed by my late mother which specifically allows for various deductions, but the lease is old and says nothing about dehydration. If there is a new division order when the estate is divided, I’m thinking I should submit a NADOA form rather than sign theirs. Good idea, or has that ship sailed?


#14

Use the NADOA form anyway.


#15

Thank you do you have a number for Rimriock that a person will answer not a recording


#16

No, I would call the owners hotline, the number at the top of the check if you have one, email the owner’s area. Most companies have the answering service and call you back when they can. They are answering thousands of calls.


#17

I have had luck calling this direct line; 918-301-4574 for Rimrock.


#18

To expand on what M_Barnes said, the job of the Division Order Analyst (DOA) at Rimrock (if they are set up like most other companies) is to obtain a division order title opinion (DOTO) on both units of a multi-unit well, and set up RR’s “pay deck” to pay the royalty owners for each month’s production.

The DOTO is generally based on record title, which means the documents filed in the County Clerk’s Office. So if you inherited an interest from an ancestor but there is no probate, the DOA has to decide what documentation the company is willing to rely on, and divy up the ancestor’s interest according to the documentation presented, and resolve conflicting claims.

The DOA generally fields calls from royalty owners with a wide latitude of expertise, ranging from the sophisticated mineral owner to the totally uneducated who do not understand the circumstances. All of the callers have one goal, get a check with having to do the least amount of their own curative. If each unit has 100 royalty owners, that is 200 royalty owners. Leaving a phone message with the name of the well, the legal description of your tract, the name of your ancestor (if applicable), and any other relevant facts is more effective than threats and complaints.


#19

I still have been unable to start a conversation on the forum so I’ll put this as a reply to your post M. Barnes although I am changing the topic to our minerals in Garvin Co. Sec. 29 Garvin Co. 4n 3w. Sorry for butting in but my husband just came back from the location and he said they have set 5 LARGE TANKS (at least 300 bbls.ea. I believe he said) and it looks like the well has been put on production. Said there were lots of men out there on location and they were hooking up a big gas looking thing way off in the corner. Don’t know if he was joking or if he really knew what it was. I asked if one of the tanks looked like it was for water and he said it didn’t look like it. Anyone heard how the well came out? I believe this well is supposed to be going across section 29 and 32. Start counting down on the six months for a check I guess.


#20

Sierra 1-32-29WHX on sales as of 12/3/18. No production listed yet. Start your countdown. And Merry Christmas!