I received in the mail today a new oil and gas division order with a new W-9.
The checks I currently receive identify MAP 154-01 MAPACHE GRANDE 154 #1H with an RO of .00138721. In which I signed and completed a W-9 for. Revenue began here 1-2023.
Another division order and another W-9 form I received today. However identified as MAPACHE GRANDE 154B #1H with a RI of .00098504. Revenue to begin 9-2023?
What’s the need for another W-9 if one has already been completed? Additionally the RO or RI different amount than what is already being received.
Is this another well in addition to the one that is already generating a check.
RO or RI come from terms of original lease signed or does somehow fluctuate as to wells producing?
I am a real novice. Wishing my Dad was still here to answer questions he was the oil man.
Please help me understand why the need for more forms to sign.
Railroad Commission records show the 154 #1H and 154B #1H are separate wells Three Span has drilled. Each one is in a separate pooled unit which is why your royalty interest is different on each of them.
Below is the plat Three Span filed with the permit application for the 154 B well. The plat also shows the location of the first well (154 #1H well) further east. The 154 unit included a total of 323.99 acres, which is the east half of Section 154. The 154 B unit covers the west half of Section 154 plus the southwest quarter of Section 153, which makes the total in that unit 489.52 acres.
Since these are different units separate division orders will apply to each one. If you don’t understand how the different decimal interests shown on the division orders they sent you were calculated you should contact Three Span and ask them to send you their calculation so you can confirm you agree with their numbers before you sign. In pooled units your decimal interest will normally be the number of net mineral acres you own that are included in the unit, divided by the total number of acres in the unit, multiplied by your percentage royalty interest in your lease.
Just thankful for all the people on this site are willing to help without anything in it for them.
The way you have explained it now makes since. Different amount due to different acreage etc.
I will look at my lease and see what it says. Hopefully they didn’t sneak anything in on me.
I also, understand that lease continues on since there is now production. But that is okay I have never made anything so I am thankful for what I get now.
My Grandfather left for the family. My mother did say he drilled a well once but, lost his fortune in the process.
I might never get rich on royalties but, I won’t be selling to anyone before I die I do know that.
Really appreciate this site and the people on it…