Hi. I have never seen anything like what I received recently from an Oil Company. It’s not from the Corporation Commission. It’s from a company that I am familiar with and is entitled “Oil and Gas Division Order”. It has PLEASE COMPLETE AND RETURN stamped on it in big red letters. It came with a cover letter that states I am in violation if I don’t provide a W-9 but there is not a W-9 anywhere with the form and I have long ago provided them with one on another royalty. This seems off somehow and as I understand it, Division Orders only come from the CC and you don’t need to return them and really, you shouldn’t. They already know I own my decimal interest on this and I don’t need to be certifying that by signing this “division order”. I have seen DO’s before this just doesn’t really seem like one. It’s on a Janzen #1-32 HP. I feel like this is not really what it is trying to appear to be. Does anyone have any input on this?
The Division Orders only come from the operator, not the OCC. You are correct that you do not have to sign the DO in OK. Other states do require them. The easiest thing to do is just send back another W-9 to the operator by certified mail return receipt and tell them that you are not signing the DO as it is not required under statute 52. This is a normal request.
Here is a blank form. The 2018 is the most current one. I have had companies balk if I use an older version.
IRS form W-9 OCT 2018 blank.pdf (129.0 KB)
DO’s don’t come from anyone other than the party that wants to pay you for your share of oil, gas & liquids sales. It may be the operator or may be the first purchaser. Or they may come from a vendor that is doing the administrative work for one of these two mentioned. You should re-send your W-9 to the company requesting the same. Don’t assume “they already know…”. They are human, mistakes happen.
it is also possible that you had a shallow well with a certain decimal interest, but this may be a new well or a transfer to a new operator or another vendor and they are verifying your new decimal for a horizontal well or an old decimal.
Okay sounds good and I understand and thank you for clarifying. I am not going to certify the decimal interest because I have not done that research and honestly do not know it. I did receive another form (pretty sure that was a lease agreement awhile back) from them when they first stated they were going to drill this new well. I sent that in and did not hear anything. I know some of these newer drills have been on hold. I had a very difficult time getting my address correct with them, and spent a lot of time on that even though I was receiving a royalty check from their other entity. It’s the same company basically, but this lets me know that perhaps this new well is going forth. I will return my W-9 without delay, but I am not certifying the decimal interest nor am I going to sign the DO as they are ordering me to do with the big red stamp which might throw some people off, quite frankly.
Make sure that you filed your address and description of your acreage at the county courthouse with the county clerk who records the deeds. That is the official place that landmen and operators go to find addresses.
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