Division Orders

How long does it normally take to do a title opinion on a division order? Tarka Energy is the driller for our well and Murphy Energy is the buyer. The Commission records on our well show it is producing and the well has been pumping since March. We are still waiting for a division order and both companies state that they are still working on a title opinion. Any comments on how long this process normally takes? Thanks.

Division orders usually come out right before the 6th month of actual production. If they don’t pay after the 6th month of production they owe you 12% interest if there are no title issues with your minerals. If there are issues with your title then they owe you 6% if they pay after the 6th month of production. You could be looking at July or August for division orders at the latest. It’s my best guess. It’s very complicated to determine who owns what. I never realized how complicated it is until I researched mine with the help of some wonderful folks on these forums. It’s difficult and tedious work.

Here's a Oklahoma landman who runs records for mineral owners. I run my own records, so have never used him, but Charles McBride, a good attorney in Stillwater, recommends him. Monte Hoffman phone # 405-842-1930 with Easton Land Services

I own mineral interests in Stephens County. Marathon got a well there and it went on production in June, 2014. A year later, no division orders. They claim they are still "clearing title". Apparently, this is happening more frequently than I realized. This well was on 640 acre spacing and there are over a hundred mineral owners involved. No one can get any information from Marathon except "we are clearing the title" and no one has received a division order. So, I assume that can be true else where and it is unbelievable to me that they can get by with taking a year to do something like that.

You can make sure you have clear title to your minerals. Landman is listed above.

Then, you might want to consult an attorney and/or consider using NARO (NADOA) Division Order http://www.nadoa.org/forms/div_ord.pdf and might consider sending the DO along with a letter stating their royalty interest check is not timely, nicely demand the statutory 12% interest and immediate payment of all production royalties due from backlog and current production sales including and ask for a copy of the calculations and attach a copy of Oklahoma §52-570.10 as set forth below.

B. 1. Proceeds from the sale of oil or gas production from an oil or gas well shall be paid to persons legally entitled thereto:

a. commencing not later than six (6) months after the date of first sale, and

b. thereafter not later than the last day of the second succeeding month after the end of the month within which such production is sold.

D. 1. Except as otherwise provided in paragraph 2 of this subsection, where proceeds from the sale of oil or gas production or some portion of such proceeds are not paid prior to the end of the applicable time periods provided in this section, that portion not timely paid shall earn interest at the rate of twelve percent (12%) per annum to be compounded annually, calculated from the end of the month in which such production is sold until the day paid.

2. a. Where such proceeds are not paid because the title thereto is not marketable, such proceeds shall earn interest at the rate of six percent (6%) per annum to be compounded annually, calculated from the end of the month in which such production was sold until such time as the title to such interest becomes marketable. Marketability of title shall be determined in accordance with the then current title examination standards of the Oklahoma Bar Association.