I've been waiting since December of last year for EOG to send DOTO papers for me and my brothers to sign.
We signed the lease in August of last year and haven't received any royalties yet.
Our land man has been telling us that the papers are on the way.
He said that only some of the people (including my family), on the Kopecki unit in Karnes county have to sign this DOTO, while others don't (apparently).
This is the first lease for us, so we are still trying to figure everything out.
Any help would be appreciated.
Thanks!
Dear Mr. Fernandez,
First, you are looking to execute a division order. A Division Order Title Opinion is an opinion of title rendered by a title attorney so that royalties can be properly disbursed with as little business risk as possible.
The execution of a Division Order is required in Texas so that you can be paid -- unless your lease specifically does not require the execution of a Division Order as a prerequisite to payment.
The Kopecki Horizontal Unit has been in production since 2013. You might want to dig a bit deeper to find out what the hold up is. If I were you, I would contact the Division Order department of EOG and find out why you are not in pay status.
Since the well has been in production for about 18 months and you only leased in August, it does raise some questions in my mind.
Best
Buddy Cotten
Do you own mineral rights, or only a non-participating royalty interest (NPRI)?
If you signed your name to the lease, or if you signed a Ratification of Oil and Gas Lease (if you only own a royalty interest, and not any of the mineral rights), then you should be receiving a division order to sign.
If you only own an NPRI interest and you did not sign a ratification of the lease, and your land is not inside any of the drill site tracts in the unit, you will not be receiving any royalties. This might be why the landman said that only some of the family members would be signing a division order and others would not. You might be one of those who will not be receiving royalties, if this is the case.
Thank you for the info Buddy.
Buddy Cotten said:
Dear Mr. Fernandez,
First, you are looking to execute a division order. A Division Order Title Opinion is an opinion of title rendered by a title attorney so that royalties can be properly disbursed with as little business risk as possible.
The execution of a Division Order is required in Texas so that you can be paid -- unless your lease specifically does not require the execution of a Division Order as a prerequisite to payment.
The Kopecki Horizontal Unit has been in production since 2013. You might want to dig a bit deeper to find out what the hold up is. If I were you, I would contact the Division Order department of EOG and find out why you are not in pay status.
Since the well has been in production for about 18 months and you only leased in August, it does raise some questions in my mind.
Best
Buddy Cotten
Mineral Manager
Thanks for the reply Marsha. My brothers and I were told that we should be expecting DOTO document to sign when curative measures are satisfied. I'd like to know what exactly these curatives are.
I like the idea of contacting the Division Order department at EOG. I will press my land man for more details first, then contact EOG if he can't give me what I'm looking for.
-steve
Marsha Breazeale said:
Do you own mineral rights, or only a non-participating royalty interest (NPRI)?
If you signed your name to the lease, or if you signed a Ratification of Oil and Gas Lease (if you only own a royalty interest, and not any of the mineral rights), then you should be receiving a division order to sign.
If you only own an NPRI interest and you did not sign a ratification of the lease, and your land is not inside any of the drill site tracts in the unit, you will not be receiving any royalties. This might be why the landman said that only some of the family members would be signing a division order and others would not. You might be one of those who will not be receiving royalties, if this is the case.
I agree, I do need to dig deeper. My brothers and I were only aware of the mineral rights after my Mother passed last July.
My Mother and her Sister were deeded the rights from their Mother, who received the rights from her Aunt.
I don't think that my Mother was aware of any Oil/Gas Company activity connected to her mineral rights.
I fairly certain that she hadn't ever signed a lease agreement.
-steve
steven brian fernandez said:
Thank you for the info Buddy.
Buddy Cotten said:
Dear Mr. Fernandez,
First, you are looking to execute a division order. A Division Order Title Opinion is an opinion of title rendered by a title attorney so that royalties can be properly disbursed with as little business risk as possible.
The execution of a Division Order is required in Texas so that you can be paid -- unless your lease specifically does not require the execution of a Division Order as a prerequisite to payment.
The Kopecki Horizontal Unit has been in production since 2013. You might want to dig a bit deeper to find out what the hold up is. If I were you, I would contact the Division Order department of EOG and find out why you are not in pay status.
Since the well has been in production for about 18 months and you only leased in August, it does raise some questions in my mind.
Best
Buddy Cotten
Mineral Manager