My interests were transferred to a new Oklahoma Oil operator n June 2022. They requested I sign a Division Order. I sent a completed W-9 Form.
After not receiving any funds, I reached out and they stated they would not release my funds until I signed the Division Order.
After attending the National NARO Convention where I received some advice in August of 2023 I sent a certified letter, return receipt with another W-9 and stated "Under Oklahoma law, I decline to sign the division order. See Hull v Sun Refining and Mkt. Co., 789 P.2d 1272 (Okla. 1989). I also made the demand for interest.
I have had no response.
The funds in suspense do not amount to enough to hire an attorney. Does anyone have any advice as to what my next steps should be?
I really appreciate any assistance.
Did you send the request by certified letter return receipt? Send the demand letter again with SECOND REQUEST at the top. That way you have a receipt for them receiving your request. Send the W-9 again. Make sure your owner number from their DO is in your letter.
Some Texas based companies tend to demand a DO since Texas needs one in order to get paid, but OK does not. I have to remind those companies that the law is different in OK.
You state that the funds in suspense do not amount enough to hire an attorney, yet you sent them a certified letter citing case law for such a small amount? What was your reason for refusing to sign the DO, seems like the most pertinent question to solve your problem?
You might also want to remind the company that: the Production Revenue Standards Act provides:
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.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
Or simply sign the division order lol
I did send Certified with Return Receipt. I will send again noting SECOND REQUEST. I did include all the pertinent information (You taught me well). They are based out of Mustang, Oklahoma.
I did include verbiage about interest in my first letter, but I like yours better. I will be sure to include in my next letter. Thank You.
Use an excle file to record all the important date/actions/responses with proofs/documents. Those documents may be handy later.
To me, it’s not about the amount. I have made it a practice not to sign Division Orders and since all of our rights are in Oklahoma, a 1099 is all that is needed. I feel the less I sign my name to and commit to, the better. They can’t ever come back on me with a sentence I missed on a Division Order. Not all DO’s are the same, so I just don’t sign any of them.
I agree, I reviewed one so called “NADOA Model Form Division Owner” prepared by a man who is a chronic scam artist. He added lots of other onerous terms not included in the model form. My point is the title can be misleading.
Even the model form states “The undersigned certifies the ownership of their decimal in production or proceeds as described above”. Most individuals don’t have the information or skill necessary to verify a decimal amount.
The model form imposes duties upon the owner that don’t otherwise exist.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
If the decimals on the DO match your records (interest) for that particular property, no reason not to sign the DO.
I tend to agree, just mark out all unnecessary verbiage that reduces your rights or imposes unnecessary obligations.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
You are getting advice from both sides on this issue. Listen to Winblad’s last post, make minor changes and return. Many division order operations are contracted out today, so by pushing the envelope you are just causing yourself more hurdles by forcing a response from a different level. In the end, what have you gained but frustration and the pleasure of dealing with the USPS…
It appears the advice I was given worked! I contacted the Operator when I could see that they sent something to my old address (I am signed up for it thru USPS) which was changed 3 years ago. The Operator told me it was probably my 1099. I responded that I haven’t received any funds and was told after more research they found that 2 checks had been distributed but both were outstanding. The log they sent me shows the first check was distributed with 30 days of my certified letter. Thanks so much for all the help and to that very special and helpful person that showed me how to get around signing Division Orders at the Oklahoma NARO Convention last year!
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