Production reporting

I just discovered that a well’s production has been reported to the OTC, with the wrong API. We’re transferring ownership with the current Operator, so haven’t seen a royalty statement in over a year. Curious how you all recommend I proceed. Notify OTC? Just drop it? Operator and production company don’t seem to realize the error, but I alerted them to the issue today.

When you say “wrong” do you mean different by many numbers or are you just seeing a 0001 at the end of the number?
Did you check the API on OCC site first? Some wells can have the same name, but legitimately have a different number for each one. What well is it? What S-T-R? Hopefully, your notification to the operator and production company can fix it.

Details: 10-06N-07W;

Hart well (active) API 051-22084 per OCC;

Richardson-Claiborne well (plugged) API 051-20760 per OCC;

Per OTC, Hart and R-C share API 051-20760;

Per OTC production from Hart being reported under Hart 20760 and R-C 20760, and nothing has been reported for 22084

I’m hoping the Operator, Blue Cedar, will acknowledge the error and report production correctly on our royalty statement coming in November.

But this just seems odd to me, and didn’t know if I should report to OTC or not.

Hart 1-10 is API 35-051-22084. Linn sold to Roan May 7, 2018.Roan sold to Citizen Jan 30, 2020. Citizen sold to Blue Cedar on Mar 16, 2020. Producing under PUN 0510684181. Enverus has the API as 22084(1-10)

Citizen sold to Blue Cedar on March 16 2020

Richardson-Claiborne 1A-10 is API 35-051-20760-B. NE4. Earlsboro First completion Hoxbar Medrano 8770-8805’ 2/16/81.
Dominion Recompleted 12/18/2002 from 8124-8370’.

Dominion sold to Linn Operating 11/2/07

Linn plugged in 2/26/15.

Linn changed to Riviera and is reporting gas from the well again under PUN 0510684180 (which seems odd since it is supposedly plugged).

Best to contact Blue Cedar and see what is going on.

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Thanks, yes, I’m in contact with Blue Cedar already. Just didn’t know if this is a typical error, or if I should notify OTC. I’ll wait to see how Blue Cedar fixes this before I take any further steps.

Thanks for your research/info!

There are other wells online in that section. Are you getting paid on them properly? (If you are in their spacing). Also, you may want to change your Division Order minimum to $25 instead of $100. That gets more timely payments on smaller amounts.

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So far, just these two wells seem to be getting mixed up. The others in the section are correct. Also strange, Blue Cedar wasn’t going to send a Division Order, just a check next month. But they did give me the option to request the DO be mailed, which I jumped on!

So, I received their supposed Division Order today, and it’s just a blank paper with very limited detail. Not a division order at all. I’m going to fill out the standard DO and return to them.

Division Orders are not necessary in Oklahoma to get paid. All you need to send is a completed W-9 form.

Good to know, thanks!

It is not necessary to send in a Division Order in OK. You can either send back the NADOA form as a substitute or many of us send a letter back stating name, address, description of acreage, name of the well, API, and most importantly, Decimal amount and a statement that no terms of the lease are to be changed. Having some documentation is important for your heirs or if you sell. If any payments were more than 180 days after first sales, then you need to demand interest. Send by certified mail, return receipt, so you have proof.

Thanks! I’ve got a blank standard DO, so I’ll fill that in and send back. The issue with royalties, is getting paid from the old companies. These wells have changed hands a couple of times since we were last paid in 2019. I’ll take a deep breath and tackle this phase. Certified mail is an excellent suggestion.

Make sure you have the most recent one. You can find it on the www.naro-us.org website.

I can’t tell you how many times I have gone back through old files to find an original DO when a company decades later tried to change the decimal amount!

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