Divison Order in Grady C

I know I’m on the Carter County forum but my wife just received a Division Order from Continental Resources for property she owns in Grady County. Hard to remember when the last production may have occurred? Any insight? Thanks

You need to tell us Section-Township-Range before anyone is likely to be able to help. But once you do that, you’ll find it a helpful group. :slight_smile:

Upon further investigation it looks like Continental is taking over The Flash Casillas well in Carter County. She has been receiving royalties from Casillas. I think the Continental divison order should have listed Carter instead of Grady? Thanks

You are correct. On November 20, Casillas transferred several wells, the Flash included, to Continental. I am sure it has something to do with their legal fight.

Before you sign, change the name of the county and initial it. Keep a copy and send by certified return receipt mail. Put the copy in your records. Make sure the decimals match the previous one (if they are correct.)

Martha,

Do you use certified return receipt mail for division orders in general, or is it because of the special situation with this one?

Rudy

I always send them by certified mail since I like to have a paper trail as to who received them. Has saved my bacon more than one time when they tried “we didn’t get it” or “we took out federal taxes because we didn’t get it”. I then have my receipt to say “Yes, you did. So-and-so signed for it.” I also scan them and put in my digital files with the certified receipt number and I can send them an email with it. In OK, you do not have to sign a DO, but I do for the paper trail when properties are sold and decks of data are turned over that may not be correct. In Texas, you must sign a DO in order to get paid.

Continental purchased Casillas’s asset in this immediate area but not their assets to the North (Grady).

Thanks, Martha. I’ll try to raise my game. :slight_smile:

Hot rod- do you know if Continental purchased leasehold or just wellbores in the area?

It’s my understanding the acquisition was the entire asset Casillas has acquired from CVX, so would be everything. I don’t think the original Casillas management team is even in place anymore.

I received the same D.O. and thanks for bringing the county to my attention. I thought maybe there was another well but I see mine says Grady too for the Flash well.

What about calling them and telling them to correct the county and reissue the D.O. with the correct information on it?

You can do that. Calling the Division Order department is a good option.

Look up the well in the OCC well data base and find out where it really is. https://imaging.occ.ok.gov/imaging/OGWellRecords.aspx

If you are talking about the FLASH 1-8-5MXH, it is located in 1701S03W in Carter County. First sales 8/18/19. Casillas was the original operator. It was sold to CPRP Services on May 13, 2020 (also a part of Casillas) . Then sold to Continental on November 23, 2020. I see from the above string that she was paid royalties. Did they pay on time? If not, then you need to send a notice of request of payments and interest to both Casillas and Continental. Send by certified mail return receipt. Casillas owed you payments and interest as of mid-February 2020 based on the first sales date.

You need to make sure you send the most recent W-9 to Continental so that they do not take out federal taxes (unless you want them to.)

Also, you do not have to sign a DO. You can send a letter instead with the correct owner name, address, description of acreage with the correct county, well name, decimal amount, and the very important statement “this letter does not allow the change of any terms in the lease agreement and does not ratify any oil or gas sales contracts”. (I am not an attorney, just making a suggestion.). Again, send by certified mail, return receipt and keep a copy of everything.

Thanks. You are a wealth of information. I have two more D.O. from Continental saying they are the new operators on some old wells that I have M-Lucas A-3 , 14-1S3W and McCrory Unit 1 on the same section. How do I find out who the previous operator/payor was to change my paperwork? I would have to go thru a zillion files just to see who pays on it now so. is there a website I can put the sections in that will tell current operator and then I can find out payor? Also by using their D.O. could that change the the old D.O. on these two? I know they are going to older wells to go deeper and need to make sure that isn’t happening with a new D.O. jUst use Nadoa and sign that one?

And who is CPRP? Im sure I’ve heard the name but ant identify with the abbreviation,thanks

If you just have change of operator Division Orders, you can just repond to them with either a letter or sign the NADOA form and send the W-9. Look up the wells on the OCC well records site and you can find the previous operators. If Continental is paying, then they are the new operator.

The reason that I keep old DO copies is for this very reason. If everything works perfectly, then the old DO decimal will be the new DO decimal and then you just sign the new one and file it in your records. I have found that sometimes, the new operator inherits a deck of payment data that has errors, so I have to write the new operator and show them the old DO and have them fix the info. They are not supposed to change the decimal unless an error is found in the title. Sometimes it does happen. In general, old wells will not be used to for new horizontal drilling. They are not the right size casing, etc.

I looked it up recently. Casillas Petroleum Resource Partners

Got a check from Casillas larger than normal that included several prior months production? First check Continental arrived. Hard to figure what’s happening? Thanks

The first check from a new well usually contains five or six months of production. It takes about six months to find all the proper owners and get the Division Orders sent out. The next check will be for one month or so (depending upon your minimum payment listed in the Division Order-I reset mine to $25.) Double check and make sure that your first payment is within the 180 day first sales date. If they are late, they owe you interest. You can find the first sales on the completion report (sometimes) or on the Gross Production Site (close to the “active” date) Gross Production