Hutto Rodell and HuttobTMM

Division Orders
1

I received my first Division Order for these wells today. Yippee. I could use some help with the following:

  1. Would someone please refresh me on how to verify the decimal interest?
  2. The exhibit shows interest type as RF1. What does that mean?
  3. I will add the clause from my lease pertaining to no deductions. Any other suggestions?
  4. Do I have to agree that I will hold the payer harmless for payments made to Owner?
  5. And one hypothetical question…does this change in status make these mineral rights more or less valuable?

This forum has been a tremendous help, thank you all.

2 Likes
2

I am sure others will reply and some may disagree with what I am saying.

When the Division Orders do not agree with the terms and conditions of my lease agreement, I simply write back and state the terms/conditions of my lease that contradict what the Division order says. Then I state that I refuse to sign until they are in agreement.

In my case, they were wanting to pay me when the amount reached above $100 instead of monthly like the lease said. They threatened to withhold the money until I signed and I merely restated my demand for making the Division order agree with the lease. They stopped arguing and began paying monthly. I never did sign the Division order.

3

Thank you very much. That is helpful. Are you dealing with property in Texas?

4

On another posting M. Barnes said Texas requires that you sign a Division Order to get paid.

I still maintain that they need to comply with the lease terms and I would insist on it.

5

Yes, they must abide by the lease terms if you demand it in the DO. You do not have to sign a DO until it is correct in TX.

OK is a different set of rules as to signing, but if you do sign, you can change the minimum and put a statement on it that it must abide by the lease terms.

1 Like
6

Some people have received division orders on Hutto TMM.

7

Are you sure they are for both wells or just one?

8

Yes, and also one for Brown Tryehart BB 1H.

9

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