Not sure where to best post this, so I'll start here.
received a request for a "Mineral permit" to conduct geophysical survey (3D type operations) for 2 years on parcels in Pottawatomie and Seminole Counties where we hold mineral interests. Document says " Contractor agrees to indeminify and hold you harmless from all liability and claims". And it also is "subject to any existing valid oil and gas lease".
As we have no surface interests, I can't think of any reason not to agree. Any thoughts????
I have a question about Division Orders in Oklahoma: If we previously signed a Division Order that had language that appeared to be attempting to change the terms of a lease, can we, at a later date, submit a NADOA form Division Order to the same company with a cover letter...or is it too late to rectify? Thanks in advance!
You are pretty much protected by statute in that the DO cannot change the terms of the lease.
I prefer to use the NADOA or modify their's to the same language to prevent any conflict. But, I doubt you are at any great disadvantage.
What was the language you objected to?
Here is the statute:
__________________________
§52-570.11. Division orders.
A division order is an instrument for the purpose of directing the distribution of proceeds from the sale of oil, gas, casinghead gas or other related hydrocarbons which warrants in writing the division of interest and the name, address and tax identification number of each interest owner with a provision requiring notice of change of ownership. A division order is executed to enable the first purchaser of the production or holder of proceeds to make remittance of proceeds directly to the owners legally entitled thereto and does not relieve the lessee of any liabilities or obligations under the oil and gas lease. Terms of a division order which conflict with the terms of any oil and gas lease are invalid, unless previously agreed to by the affected parties. This subsection shall only apply to division orders executed on or after July 1, 1989.
The usual warranty clause, copious rules on pricing and delivery, making our royalty subject to reduction for administrative and transportation costs, etc...legal size page front and back, tiny print. Their instruction sheet in bold letters informs that no substitute forms will be accepted as will no changes to their form. Not going to lie, I feel kinda bullied by these forms, so I"m going to send the NADOA and a cover letter accepting their decimal point, which is correct, and a W-9. I'm sure they'll balk, but we'll see how this goes.
Rick, is it acceptable for the mineral owner, having already signed one of these onerous forms, to send a NADOA form asking that it replace the previous form? Have you ever heard of that working?
If you want to go further, you could include a letter that you agree with the decimal calculation of my interest but do not agree to other language in the DO. State you are including a standard NADOA division order as a courtesy since Oklahoma Statutes do not require a signed division order per HULL v. SUN REFINING AND MARKETING CO. And respectfully request to be placed in a pay status per OK §52-570.10.
Replacing one you sent? You really can't retrieve the bullet once you pulled the trigger. You signed it. You have to live with it. I feel the statutes are on your side. If they started doing something that modifies the lease, then you may to engage an attorney and have to take it to court.
I wouldn't waste my time trying to send a replacement for one you sent at this point.
Christine: I have recently dealt with a similar issue. Meaning, I have been receiving DO's that would require an attorney to decipher! I simply fill out the NADOA form and return it along with the W9 as Rick suggested below Still waiting to see if the latest company begins paying on it.
Knowledge certainly is power, especially in this business! I have to admit I got a kick out of sending that NADOA form back today. This company can be pretty resistant....Thanks y'all!
I'm seeing several new twists in leases. A net proceeds lease with an attached Exhibit "A" that clearly states it is a gross proceeds lease with no deducts allowed! Anyone else seeing this?
I am doing my research and was wondering what Energy companies (not exploration or operators) are buying oil in this area. I know the operators and exploration companies are drilling; however, I would like to know what energy companies i e. Conoco, BP, etc are they contracting with? Thank you for your help in my research.
Something strange just happened. I received an offer from an landman and then after knowing that I was being forced pooled, he backed out of the deal due to "extensive research". Would this have anything to do with the exploration company I am arguing at OCC with may have said something? Is this a common occurrence?