We have leased our mineral rights last year. The well started producing at the end of September. We still have not got a division order. How long do they have to send it and money? It is in Howard County, Section 31 Block 33.
Sometimes it takes 6 months or so for a Division Order to come Mae. At least that’s my experience. I don’t know legally within what time span a Producer has to furnish Division Orders to royalty owners. Hope another person can answer the legalities.
Thank you.
I think after 6 months they have to pay you interest. You should see something soon. YAY
They have 6 months from the date of the first oil or gas being sold to get you a check unless your title isn’t clear. That doesn’t mean the day they start producing the well, but when oil or gas are sold. After 6 months, you need to write them a certified letter and ask for 12% interest.
Thank you that is so helpful.
One more thing, how do I know when they started selling?
They should have already had you ratify your lease. What company. You should have had some correspondence with the company. Call them - Kimberly Smith Development Resources Inc
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They haven’t told us anything. The company is Oxy. We have Turnberry 2705 Section 31 Block 33.
How do we find out when they started selling the oil?
In Gonzales County it took 4 years. But they said it was because there were so many of us.
Wow, there are a lot of us.
Around 450 for us. Good luck.
Oh wow, family members. I think it’s 150.
They started production on Oct 4.
I have called the lady at Oxy; very rude, said stop calling and it will not be May before we get it.
Four years is unacceptable. It doesn’t take a lawyer that long to chase down heirs and owners. Lawyers get paid by the hour and unfortunately they will drag it out as long as they can getting the title opinion done. The oil company will have to pay you interest I’m sure on something that has been producing for four years. That money goes into an account and accrues interest. Shouldn’t take longer than 6 months normally and up to 9 months on something like that to get a division order. I’m actually still waiting on ours and there are up to 450 owners. They are still working on the title opinion right now.
I’m in the same boat. Keep pressing the company. That’s all you can do. I’ve had two wells on my interest that were online in August. Landman contacted last month said it’s taking them longer than normal to get the title opinion. They actually have 3 new wells flowing as of last month and drilling more as we speak. The company can’t do anything until the title opinion is complete from the lawyer. I stated earlier that it’s unfortunate that lawyers get paid by the hour and they will drag it out as long as they can. Do you know the details on your wells and how they are doing and any new drills permitted etc.? Contact the railroad commission; they might give you some advice. I’m all new to this. I knew I had mineral my grandpa left me and my siblings. We had no idea they drilled the wells last year and they were flowing. Good thing is TRRC tracks it all and the company is required to file production reports and permits application.
Dear Ms. Pace,
I don’t understand a lot of it, either.
It appears that your properties are in Texas.
In Texas, you are required to execute a Division Order in order for the company to place you in line for payment, unless the oil and gas lease removed that requirement.
Also in Texas, the non-payment of royalty is not cause for lease cancellation, unless the lease form itself specifically makes the payment of royalty a condition of lease rather than an obligation of the Lessee.
Also in Texas, if you granted a paid-up lease last year (which I bet that you have), and the primary term is still in force and effect, the lease is still in force and effect, even if no royalty has been paid.
There is an exception to this rule. If the attorney or Mineral Manager drafting the paid-up oil and gas lease for the Lessor inserted a clause that required the satisfaction of all obligations during the primary term and if those payments were not made, then the lease would ipsa facto terminate.
It’s pretty sad that the land tech or lease records analyst basically told you to not bother them. Land techs and Junior landmen and land assistants are not at the top of the food chain in the Land Department. They need to be highly supervised, for the most part. I might get some blowback on this, but it’s certainly been my experience as a division land manager.
Have you now received a Division Order?
Best wishes,
Hi Buddy, we still have not got a Division Order. I am not sure when they started production. I think it was in October. My aunt said that the well was producing 800 barrels a day. I don’t know how she found this out and there are 2 more wells now but I am not sure if that is right.