Division order


#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!


#21

Linda, Is the Well Pad in the NE/4 of the NE/4. If so this could be the Lusitano 1-20-17LWH. I have been waiting for a Spud date notification on the OCC web site and have not seen one. This well was going north into S20 & S17.


#22

Merry Christmas M. and thanks for the information on the Sierra 1-32-29WHX! Guess we can expect a little check about next June or so. Sounds good!


#23

Yes, Cheryl, I believe that’s right. It’s the one we were watching for a while thinking it was ours but ours was padded in the section south of there (in 32 4n 3w.


#24

Linda, Do you know if the Lusitano was ever started. I know that the permit expired on 10/18, but do not know if it was started before it expired. No spud docs shown on OCC website. Rimrock was the permitted operator.


#25

Cheryl:

What is the legal description for the Lusitano & I will look it up for you?


#26

Lusitano 1-20-17LWH. S29 04N 03W, Permit approved 4/18/18 with Expiration Date of 10/18/18.


#27

Cheryl: Doesn’t appear as though the well was spud. Rimrocks pooling for Section 20 expired on 12/18/18, if there has been no “operations” on the lands. My best guess is the section will be pooled again by Casillas Operating that seems to be the most active in that area.

Dates on permits don’t really mean anything because we don’t know when “operations begin”.

Let me known if this helps.


#28

Cheryl, I went by the other day and they haven’t don’t anything since I went by several months ago. They have spent a lot of money building the big location and have it all graveled and fenced. The gate was locked but I could see a small red metal looking something in the middle. Don’t know if it was just a marker as to where the well was supposed to be started or what??? Sorry I don’t have better news for you.