DO special clause

I don’t have copy of leases. Phillips is the Reporting Company. Mid-Con is the Operator.

Phillips66 is adding a special clause to the DO for “proceeds from sale” and “agent is authorized to purchase such production and proceeds from the sale of oil and gas”

And second special clause “phillips66 is authorized to reduce such price by any charges for transporting oil by … and any treating costs”

Is this typical as I’m not seeing in on our other DO’s? and will this DO be accepted by Phillips66 if we cross out those special clauses?

Personally, I would not sign that-especially due to the “reduce such price…”. I would substitute the NADOA form and use it instead. Check your lease and see if you have a cost free lease, no post production clause, etc. They may be trying to change the lease.

0_NADOA_Division Order Model Blank Form 2017v 2.pdf (78.2 KB)

Thank you. I’ll search online for the lease and return DO on this standard form.