Need advice: conflict btwn Operator and Landman's assessment of our decimal point interest

General Mineral Rights Discussion
1

Operator wants us to sign a division order. I hired a landman to double check if the decimal interest as stated in the division order was accurate. The landman's conclusion was different than what was on the division order.

The operator will not tell us **which** of those tracks in the division order have our ORRI burden.

The operator won't tell us the amount of our ORRI

The operator won't even tell us tell us something simple like the total acreage in the unit.

In sum, the operator refuses to explain how they arrived at the **decimal interest** on the division order they wish us to sign. I know how to calculate this, but they refuse to provide the data to enter into the formula.

Any suggestions or advice would be appreciated.

2

Hi, MO -

Are you talking to the Division Order Department or to the Operator's main office?

Either way, it sounds like the Operator is not acting in a very prudent manner. You may need to engage the services of an Attorney.

Where are the interests - What State, County and legal description? What is the name of the Operator and the Unit or Well?

Do you have a copy of your Source Deed? The instrument by which you were conveyed or reserved your ORRI?

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

3

Hi Charles, Thank you for replying. Looks like you are the only one who has advice. My answers after >> yours:

>>Are you talking to the Division Order Department or to the Operator's main office?


Both. The "Land Annalist" and the "Land Manager" both did not answer my specific questions and not the O&G Assignments from the 1950's I submitted as evidence were shrugged off as being "old" and probably not the full picture of our current situation (when I asked for counter evidence, they did not provide it).

>>What State, County and legal description? What is the name of the Operator and the Unit or Well?

NM, Eddy, Square Lake 12 Unit, operator Tandem

legal description of Square Lake 12 Unit as printed on the D.O. is too long to list here (buzz me offline if you really want it). They refuse to tell us *which* tracks in Square Lake 12 Unit carry our ORRI burden (obviously they realize this info is vital to corroborate the research done by my Landman)

>>Do you have a copy of your Source Deed? The instrument by which you were conveyed or reserved your ORRI?


I have several O&G Assignments (1940s to 1960s) and a Division of Interest paper that were signed by my grandparents (1960s). Grandparents have long passed away.

I've asked the operator basic questions like:

- What is the total acreage of the Square Lake 12 Unit?

- What is the amount of our ORRI?

- What Tracts do they show our ORRI burden?

- What is the acreage of each of those tracts?

- What is our Tract Participation in the entire Unit?
- Do they have any Source Deeds showing how my grandparents received or diminished their ORRI?
Of course my landman also researched and was able to find his own answers but we asked the operator because we want to see if there is any discrepancy between their records and our research.
They operator thinks that the explanation for the different conclusions is probably due to some assignment my grandparents made which we haven't found yet (they encourage us to continue searching the public records for it).
They also say they do not have staff available to answer our questions because of the cutbacks due to the oil depression. Perhaps so, but are all of my questions really difficult for an operator to answer?
4

Landmen, whether Analysts or Managers or anyone else in the Land Department are usually quite helpful.

Their not being able or willing to help may be for some reason that is beyond their control, such as the lack of available staff at the moment they mentioned (I have 37 years of experience and have been out of work since January).

It may also be that if they aren't the company that developed the property, if Tandem purchased the Square Lake 12 Unit from another company, they might not have received a Land File with it. They might not have any Title Runsheets or copies of documents to go pull out of a file to review for you. Companies forget about things like Land Files all the time when they are buying and selling properties.

I'd suggest you have your Landman carefully double check his work and then send your Title Runsheet and the accompanying documents to Tandem's Division Order Department instead of the Land Department.

Frequently it is the company(ies) buying the oil and gas that disburse the royalty checks. If that is the case here, then you will need to send your data to that or those company(ies)' Division Order Department(s). Tandem's Division Order Department will be able to tell you who to contact if it is another company or other companies.

I have been doing some basic research on the area where the Square Lake 12 Unit is and want to talk to you privately about it. Please accept my invitation to become A Friend on The Forum so I can send you my contact information.

Charles

5

Thank you Charles. Accepted your friend request.

Yes, the operator "inherited" the current decimal point interest from the previous operator when they bought the unit in the 1980's. it is my understanding that they did not calculate the decimal point interest number. There have been many operators of Square Lake 12 Unit since my grandparents passed on. I have paystubs to back up what older operators were paying.

6

Check out all of the older paystubs and see if there is ever a change in the decimal interest they reflect.

If there is, the prior year would have been when something in your family's interest would have changed.

Perhaps the change in ownership Tandem's Land Department suggested or the Unit's size may have been amended, something like that.

Just have to see. It all should be of public record.

With your permission, I am switching over to private email.

7

Hi Charles,

Please, feel free to contact me in private email.

Yes, this COULD explain the difference, if we could get confirmation from what they have on their records. So far, the operator is not answering the questions that would confirm or deny our own conclusions.

8

I just sent you a message via The Forum's Friends' platform. Please respond to my request for additional information.

And please allow us both to continue this conversation in private email. There may be some wonderful surprises in store for you.

As I have mentioned before, the present day Operator may not have any Land Records upon which to base any argument they might have against your conclusions.

It might not even be an issue they are responsible for dealing with anymore.

It's not really fair of you to try and continue to Hammer a couple of Guys, when all they probably have is an empty Snipe Bag to look into in order to try and answer your questions.

Sit. Stay.