I have received a division order for farm tract 2240 , being unit tract 12 of the Maund Ranch 26 unit Dimmit county Texas , Where I have 50% of the mineral rights . Can anyone tell me what is happening here ? What might it be worth ? Do I need a lawyer ?
I know nothing .
Hi, Ron -
I was not able to find anything on a Maude Well in Dimmit County. Can you give me a little more detailed information, such as an Abstract Number and Survey Name? Farm Tract 2240 isn't enough for me to be able to locate the well.
And, what company is Operating the Well?
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Anadarka is the company. .
No abstract number that I'm aware of . Where would I find it ?
It refers to the Denton Colony, a subdivision in Dimmit county, if that helps any.
I'll see if that helps, but it will have to be this afternoon.
Typically, no, you don't need to consult an Attorney over a Division Order, but you may if you wish to. If you need one suggested to you, just let me know.
Do you have a copy of your Lease that you can scan in and send me? Accept me offer to become A Friend on The Forum and you can send it to me privately that way.
Charles
Here you go!
Interesting little bit of history involving your lands!
You appear to have 1/2 interest in a 10 acre lot, in a Unit with 10 Horizontal Wells Permitted in it. Most of, if not all of the Wells have been completed.
If you can tell me the Decimal Interest set out in your Division Order (DO), I can give you a rough estimate of what your royalty income will be.
Hope this helps -
Charles
1102-01.MAUDERANCH26UNIT.pdf (775 KB) 1103-02.MAPSOFDENTONCOLONY.pdf (666 KB) 1104-03.DENTONIOTX_TheHandb...pdf (622 KB)Thank you sir , for this info .
They give me two numbers . Tract interest is 0.08333333 , unit interest is 0.00032552 .
Again thank you for your time.
Ron
Ron -
Your "Unit Interest" of 0.00032552 appears to be your interest in the gross production in the Well (all of the Oil, Gas and Gas Liquids produced).
If my Jr. High School Math is correct, for every $10,000.00 realized from the sale of products from the Wells, you get $3.2552 (pre-tax).
Not a lot, but with what looks like a potential 10 Wells producing, not a stick in the eye, either.
Your first check will be for a number of months' worth of the initial "flush" production from several of the Wells and will probably make for a nice surprise.
But be forewarned that because of the delays in the paperwork, such as the Royalty Division Order they are waiting for you to sign and return, the first check is always the largest.
Your Royalty Checks will never the same after that.
The nice surprise of the first Royalty Check will be because at least the first 5 Wells that were Completed began producing last Fall - the #4H in August 2014, the #1H, #2H, #3H and #5H in October 2014.
Those Wells and those that have been Completed and have begun producing since then have all been producing at their "flush" production levels. And your Royalties from those Wells has been piling up for months.
The first Royalty Checks are always nice. I know from this.
But you need to know that the production from each of the Wells will drop to about 1/2 of their "flush" production after the first 6 months or so and maybe even drop to 1/10th of their "flush" production after the first year.
That's known as "Settling". All Wells do it.
A few of the following early checks, as the Wells continue to be completed and brought "On Line", will be for nice amounts as well.
But once all 10 Wells have "Settled", you will be making only about $100.00 a month, maybe $125.00 a month.
You will, however, be receiving whatever Royalty Checks from the Wells for many years: Ten, twenty, perhaps even thirty years.
The amount of the royalty checks will continue to decline (hopefully very slowly), until the Wells are eventually Plugged and Abandoned.
By law or regulation, i believe you can request that they pay you a minimum of twice a year. That way, you will get a check for maybe between $600 and $750 each time.
Whoever you inherited your interest from might not have left you much, but they may have just passed down to you a little help for nicer Presents for the Holidays and maybe a nice, very short Vacation every few years.
Not bad for something that didn't cost you anything.
Hope this helps -
Charles
Ron,
Here is a post that helps explain the basics of division orders.
P
Great info sir , now could I take you up on that offer of suggesting a good attorney that specializes in oil and gas law.. I live near San Antonio .
I've been told that I could possibly triple that interest amount by getting one. Thank you very much for your time Charles .
Ron -
Since you live near San Antonio, I advise that you contact Wade Caldwell, who is a frequent, very knowledgeable and extremely well respected contributor to The Forum.
You should be able to find him via The Forum, but if not, this is the contact information I found for him via the Texas State Bar Association's website:
G. WADE CALDWELL
Barton, East & Caldwell, P.L.L.C.
One Riverwalk Place, Suite 1825
700 N Saint Marys St
San Antonio, TX
If this contact information for him is not correct, I will be happy to try again.
I do not know Mr. Caldwell personally, but he has "My Vote" in every respect.
Hope this helps -
Charles