special clauses on division order state they can take or purchase such production and proceeds from the sale of oil and gas …in accordance of interest described hearin. ConocoPhillips?
Also additional Special Clause as Owner request for division order?
It does not sound right or seem right, what am I missing?
I guess the first part of my post did not post so here it is:
The special clauses that the DO sent to us after we contacted them about the funds that was suspended to the state. They said the reason was the address they had for my cousins and I were not updated in the system. So I updated them and they sent the DO for us to sign? My question is about the two special clauses they added at the bottom. First one says: The interest certified by the undersigned includes all oil(defined as crude oil and condensate) and proceeds derived from the sale of all oil and gas(defined as natural gas and casting head gas) produced including all substances produced with such oil and gas, attributable to the interest herein. From effective date until further written notice, and subject to the pervisions herein, ConocoPhillips Company or ConocoPhillips Company’s designated agent, is autorized to take or purchase such production and proceeds for the sale of oil and gas, in accordance with the division of interest described herein.
Additional Special Clause: OWNER REQUEST FOR DIVISION ORDER
Is these special clauses normal, what do they mean in laymans terms? Thanks
Division order statutes vary by state . If in Texas, you can strike that special clause as it is not required. However, if your lease has special clauses you want to make sure the operator makes note of when setting up payments, you can add it as special clause. We add our lease clause that prohibits post-production deductions from royalty on the hope the accounting dept will set up properly.
We just inheirited the mineral/royalties, and do not have a copy of lease? Would like to get a copy of it just not sure who or how to get it? New to all of this but found Grandfathers name of Unclaimed Property, and went from there. Yes it is in Loving County Texas!
Contact the operator’s Division Order department and ask for a copy of the lease. You need to notify them of your inheritance so that they can put the new heirs into pay status. Be ready with death certificates, probate documents, driver’s licenses, W-9s, etc. They will tell you what they need. Ask them for a copy of the actual lease, not the memorandum.
You can also hunt on www.TexasFile.com and hunt by name of the ancestor. You may only find a memorandum of lease which is not terribly helpful. You want an actual copy of the lease.
Hi,
I sent them a certified letter asking for a copy of the lease they are following over a month ago? Still have not heard back? Have not signed the division order yet because I don’t understand the special clauses? So just have not signed yet. They sent email saying we are on the books but have to sign the DO until I understand them I really don’t know what to do? Any help would be great. Thank you in advance!
Look at the division order in Texas Natural Resources Code in this thread on Mineral Rights Forum:
At the very minimum, ask them what net mineral acres and what royalty they are carrying for you. And ask if the well is pooling (how many net acres acres you have out of the total pooling acres) or an allocation well (how many feet of perforations versus the whole length) so that you can verify the decimal. I use the NADOA form, but you want to make sure that the clause that says “no terms of the lease may be changed” is on whatever form you use.