No division order yet

Martha

This month, July, is the sixth month after first sale of oil and gas from Black Mesa. I have yet to receive a division order. Should I call Camino and ask about this?

Thanks

Certified letters do more good. Be sure to ask for 12% interest if no revenue in 180 days from 1st production.

I’m in 4-5-5 with the Great Plains Horizontal well. Haven’t received anything yet either!

Same advice. COVID has thrown everyone for a loop (more than usual). Lots of folks are working from home and may not have access to all the data that they need to do their jobs, or they may be furloughed, etc.

Send a certified return receipt letter asking for interest. Keep copies of everything that you send.

I did call Camino. They tell me they have until six months after date of FIRST SALE to start payment. They are saying first sale was Feb 6,2020. I have always heard it is six month after first date of production. Which is correct? Thanks

First sales is the date. Not production.

Pretty much the same these days as most, but not all, wells are fracked into sales lines.

Thank you Martha. Is the calculations based on months, not days? (i.e., not 180 days but six months, regardless of the days in month?)

Just want to get it right in case I have to get interest.

Thanks to you all.

Based on months. If you have marketable title, the interest is 12% compounded annually. It usually wait until I get the first check and then ask for interest if the second month passes without it. Sometimes they automatically send it on the second check month, so I wait for the second check so saved myself certified mail charges if it is there. Also, if the well had first sales on the 21st, but the company cuts their checks on the 20th, it won’t show up in that month’s check. Waiting about eight months works for me and then I send the certified letter. They will pay up eventually and I don’t mind 12% interest adding up.

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Royalty owners are paid monthly, so interest is 1% per month, compounded yearly. If not paid in the first 6 months, then the interest goes back to first production or sales as some like to say. This is based on marketable title.

Be sure and not use the DO sent by the company. They try to change your Deduction Terms from your lease. Use the one recommend on this forum.

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Just received (last month ) DO and first check from an EOG well with first sale in Feb 2019. They are WAY behind. This month the interest on that late payment was received. I did send a certified letter asking for interest- as those on here recommend. 12% is nice to get…

Better yet, use no form in Oklahoma as it is not required. Still get their proposed form to check their math.

What does that mean “Use no form in Oklahoma as it is not required”?

You don’t have to send in a Division Order in Oklahoma to be paid revenue. Provide the operator an executed W-9 form and they are obligated to pay you.

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Where do I find the DO form on this site that you guys recommend to use?

For Oklahoma. You may use the NADOA form (attached) or you can use a letter with your name, address, well name, confirming the decimal amount of 0.xxxx and the statement that no terms of the lease are to be changed. Turn in your W-9. That is what they really need. 0_NADOA_Division Order Model Blank Form 2017v 2.pdf (78.2 KB)

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So, I am supposed to figure the decimal amount and check that it is the same as what they figured?

Yes. The formula is: net acres/actual spacing acres x royalty x % perforations in your section.

Note: if your section is on the northern tier (sec 1-6) or western tier (6,7,18,19,30,31), then the sections are not exactly 640 acres and you have to use the exact acreage for those. It can be found on the Bureau of Land Management site. Search - BLM GLO Records

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Still no division order. Has anyone had experience with Camino? Will the first royalty check take months to be issued? Seems like six months should be enough time to do this paperwork, even under current conditions.