A new company apparently bought the lease and I have received a division order however the new company has not paid royalties. The division order is dated June 1st, 2020 to be effective Jan. 1st, 2020. NW/4 NW/4 SEC1 T9N-4W What should I do?
Send a certified letter requesting payment & statutory 12% interest.
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Thank you for your reply.
Compare the Division order effective date to the date of first sales. They owe interest is they do not pay 180 days after first sales. The date on the DO may not be accurate, so I would not sign it if it isn’t. Also check the decimal amount to see it if is correct. If it is within a few days and the decimal is correct, then send a request by certified return receipt requesting the statutory interest.
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Thank you. They sent a letter stating they took over the operations of the well Jan.1, 2020. Where do I find the date of first sale?
You can look up the first sales on the OTC Gross production site. Gross Production
Since this is a purchase of an older well, this is just an informational DO. If it matches your previous one, then send it back and request immediate payment and any interest that is due. Sometimes it takes a few months to get a transfer finished.
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Technically in OK, you do not have to sign a division order in order to get paid. However, it is always good to either sign one if it is correct, or to write a letter and send it certified return receipt which confirms your name, address, well name, decimal amount, a statement that no terms or clauses of the lease are to be changed and a request for immediate payment. This leaves a paper trail for you heirs over time. I also reset the minimum from $100 to $25 so that regular payments will continue closer together over time as the royalties get smaller and smaller.
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Many Division Orders attempt to modify your rights such as minimum payment, timing. Other division orders attempt wildly modify lease/pooling order terms but allowing deductions. Others have you warranty title. Martha is correct, Oklahoma doesn’t require signing them. I usually provide them information regarding where to make payments.
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