Recently, I received div orders from two organizations for the same well. Legal description is the same. Both are for oil only. Each organization says that they are the purchaser (and both show the same operator). Both DOs are on the standard DO format (I verified this). Both told me that they have purchased from this well in the past year.
I have a very small interest, and production from this conventional well is very small, so I don't have a lot at stake here.
One of the purchasers suggested I call the operator, RJ Exploration, and ask for an explanation.
?? Any experience with this?
Are the division orders for the same formation?
Tom
This well only has one formation - the Boggy. This was drilled in the early 1980s.
I have the answer :).
I called the operator. The manager there confirmed that they have changed purchasers, again, and advised me to sign both DOs, as they may sell to both companies in the future.
Now I'm confused (not that that's unusual). I've always believed that the mineral owner's relationship, during production, is with the producer, and that the division order was with the producer. I wouldn't think the outfit(s) that purchased the oil from the producer has/have any legal relationship with the mineral owner, or any need for a division order. What am I missing?
Hi Rudy, I am pretty new in this game, and hope a more experienced voice will chime in.
I have small interests. My checks mostly come from large "producers", like Sunoco and CVR. When the operators change that relationship, I get a new request for DO and W-9. This is happening very frequently now - I've gotten 6 or so of these in the last three months.
The might be the difference in the definition of "operator", and "producer".
I found the phone number for the operator by looking up the information on the well in the OK Corp Commission's on line imaging. Found it right on the transfer of operator from 2010. :).