I am in the Mulhall area and the well has been completed since April. I still have not received any division orders. I know that they have to start paying after 6 months, but is that 6 months after completion or after the first sale? And do they gave to send the division orders before they start paying?
Brandye, You don't have to sign a DO to get paid, but the well's operator has to know your royalty interest (make 100% sure your interest is correct). I use NARO (NADOA) Division Order. http://www.nadoa.org/forms/div_ord.pdf You 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, ask for a copy of the calculations and attach a copy of Oklahoma ยง52-570.10 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.