I just got the division order papers in the mail and want to confirm what is on them if anybody is willing to help.
The type of interest is RI, does that stand for Royalty Interest? I am just guessing, first papers besides the lease 4 years ago so I am new to the process.
Owner number, should this be of any concern for me or is it just to keep me on file with the company?
Is the decimal interest the amount of acres I own divided by the amount of acres being drilled then multiplied by the percentage on my lease?
What should my next step be? I feel it is all correct so would you still contact a lawyer? I had one before I signed my lease but do not see the worth in it for this matter since the intial lease trumps the division order correct?
Thank you for any input on this, new to the division order process.
Yes have an attorney familiar with oil and gas review it. There are some things that need to be removed from the standard order.
dustan. the lease was already “negotiated”. the division order was mailed to you because they have everything and everyone in order on their end. this means your making money. there’s nothing to negotiate on with the division order. the only thing you may do is calculate the percentage your being paid, sometimes their incorrect but very rarely NOT. 98 rigs and counting…
If the division order sais The undersigned agrees to indemnify an reimburse payer any amount attributable to an interest to witch the undersighned is no entitled.
I think you can just scratch it out but check with an attorny
State of production? Look under Mineral Help at the top of this page for links that may help.
Division Order is sent out to confirm that you are in agreement with decimal interest stipulated. Don’t know ND but in OK take net mineral acres/unit acres x lease royalty =percentage you royalty will be paid on. Retain a copy and keep on file. In Okla, oil co has 6 mos from date of 1st production to disburse. If late interest may be requested per statute. Ron McKenzie may be your guy.
I don't return division orders for ND, they can not withhold your royalty because you did not return the division order. There is just nothing to be gained in ND by returning a division order. Do make sure that they have your taxpayer information, correct address and so on.
If you sign and return the division order, you are agreeing to share the blame (no interest on late payments) if they figured your interest incorrectly. Less of a problem in ND is the fact that some operators try to slip an agreement for you to bear the cost of something (like transportation) that you may not have agreed to in your lease. The division order may have language that it does not alter a lease, true, but by signing and returning the division order you could be entering into a NEW agreement that will be in force until the division order is recinded. You can agree to most anything and it's bad news to anyone who did not read and understand a division order.