When to Expect a Division Order

The wells on the Jamison pad in the Liberty district are approaching completion based on the DEP reporting that I follow. Does anyone have a feel for when a Division Order would be issued after a Completion Report WR-35 is issued?

Usually they’ll start producing gas before they start sending out Division Orders, but it does vary. They don’t like to spend time on Division Orders until there’s something to divide up.

It took about 20 months from date of first production for me to receive our DO.

20 months is a ridiculously long time! That’s outrageous! They were producing without paying you for 20 months?! Sheesh. The oil and gas industry still surprises me.

They still haven’t paid me, but it took 20 months for the D.O. Still waiting after returning the DO for my first check.

Thanks Kyle. It appears from recent production reports at WV DEP that the SWN wells went into production very soon after the completion reports. Will wait and see.

Jack could you share what company you were involved with on the delay?

Corterra Energy out of Tulsa.

In Oklahoma, the Division Orders usually come out about four-five months after first sales. OK has a statutory interest payment that is required if payment is not received 180 days after first sales. At 12% for clear title, that is significant. Also the DO is not required to be signed in order to get paid. (Some delays may happen due to bankruptcies and company sales)

In TX, the interest rate is very low and the DO is required to be signed.

Someone on the forum with WV experience could comment on the law in WV regarding interest and the timing of the DO. 20 months seems quite excessive, but I am not familiar with the state rules.

My interests are in Oklahoma, I don’t know why it took 20 months from date of first production. I did request that I be paid interest on the payments not received within the 180 day window. We shall see how this all unfolds. So far no payments of any kind.

The question was posted in the WV topic area, so that is why I was confused. If you post the section, township and range and well name, I can look up the well for OK and get you some more information on the well.

Dome,

You can also check the county courthouse records to see if a unit declaration has been filed.

Hope this helps!

Rachel

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