New Division order after Dissolving a Trust

After a trust dissolution, a new Division Order was issued to each of the members.

Is it correct to say I cannot negotiate the interest since the original lease is still in place?

What happens if I do not sign?

Is is best for me to just sign and move on?

Thank you! :slight_smile:

No, you canโ€™t negotiate the interest. If you donโ€™t sign, it depends on the state the well is in. I would just sign and move on. Others on this site may suggest you revise the Division Order.

If it is in Texas you will need to sign it and most likely provide a W9 as well so taxes can be taken out. As far as renegotiating anything, the only thing you can try and do is set the amount when paid if below $100 to $25 so you get a check when it is at $25 or more. Otherwise it will be at $100 or more before a check is issued. The purpose of the DO is to establish that you are the owner of said amount of percentage of the mineral rights based on what was in the trust and the division of the same in dilution by number of members in that trust or how it was specified in the trust at dissolution. Example. the trust owns 10% of something, there are four (4) members that get that divided equally if stated that way in the trust. Now you have 25% of the 10% or 2.5% of the total 10% that the trust holds as does each other member. I hope that makes some sense? MK

Thank you all for your responses. They have been helpful! :slight_smile:

Many of us use the NADOA form instead of the company Division Order. You want to make sure that the DO does not change the terms of the lease. Many of them try to slip in charges that were not originally allowed on the lease. The NADOA form is much shorter and simpler and contains all the relevant data. You may have to transfer info from the company division order regarding the names, addresses, decimals, etc.

0_NADOA_Division Order Model Blank Form 2017v 2.pdf (78.2 KB)

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