I've gotten the impression from reading posts here the process demands division orders be signed before checks will be sent out. A family member just received her 1st royalty check from her mineral rights in Oklahoma and hasn't received division orders to sign yet. Is this within the process? (I checked the math on her decimal percentage paid and it's accurate.)
Also - We're finding out the horizontal hole produced nicely for a few weeks but had problems. The little we have been told is there's a lot of sand causing problems. I have some straight hole drilling experience and what goes on in holes isn't completely foreign to me but I'm not understanding that confidently. If this is common enough to explain I'd sure appreciate a better understanding.
Larry, the operator can send out checks any time they like. The operator has a time frame in which they need to pay or they owe interest. Companies don't like paying interest. The title/division order department may be behind and you may not receive a division order for a year. The law in some states says that the operator MAY require you to return a division order before you are paid, but that doesn't mean that the operator can't pay you. If the numbers came out right, cash the check and be glad the operator is paying reasonably quick and not expecting you to jump through any extra hoops. I hope this helps.
In my experience I've rec'd DOs first; then payment. That said, just this past month we received some payment on the second well drilled by one company, and today, rec'd the DOs for it (it's in a different quarter of the section being leased.) We thought this odd too, but figured it's more a reflection of delays in paperwork processing than anything else. We're hearing "we're swamped" from everyone, so r w is likely right on target about them being behind. Better to get paid and papers later than papers and no dough, huh?
Yes R.W. it does. You anticipated the real question I neglected to include. : ~}
Thank you again for responding quickly. You do often and it really helps.
p.s. -- John Allen, your post wasn't there yet when I started this response and it took a few minutes for me to see it there. Thank you / YES, I suppose so. NOW if my operator will just get busy on my section so I can someday get one too.
Yes, usually division orders are signed before a royalty owner receives payment, but I see no harm in your situation as long as the royalty paid corresponds accurately to the decimal interest.
