Notifying of proper ownership of an ORRI

We received a letter that the oil company got permits to pool together. We have not heard anything since but I see on the State’s OCD website that they have spud dates but no production yet. What are the steps we need to take to let them know we have inherited our dad’s 1.25% ORRI and that once they start producing, we will receive the proper division order?

I’m presuming that your fathers interest is in New Mexico? From my experience the division order will remain in your fathers name until proper conveyances have been filed in the County where the interest is. You might want to consult an attorney to do the paperwork. Good luck.

I believe we just successfully did this. Formed an LLC and filed a quiet title with the county. So now what? Do we let the NMOCD and the contact name on the report know that production splits need to be sent in our LLC name and not our dad’s? We did not show up to the pooling hearing in Santa Fe in February 2019. Should we send our info. to the attorneys that represent the oil company that filed for the pooling? Or to the contact name listed on the NM OCD website? Or both?

If it was me and not my attorney, I would contact the Company that is drilling the lease (operator) and inquire with their division order dept. on what the Company requires for documentation. Most Companies have differing title requirements before they are satisfied with ownership and will issue division orders in your LLC name only after satisfying their title requirements. Every oil company has a division order dept. I would start there. Good luck.

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Thank you Rick5! This was the exactly the verbiage I needed to understand where to go and how to inquire.

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