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Texas Message Board

DIVISION ORDERS

  • 02/17/2012 2:10 PM
    Quote
    Message # 828237
    Anonymous

    I would like to find out what is a good division order? What specifically should we royalty owners try to get written in them? What special clauses should we request? I also realize there are time restraints. Where do I gather knowledge so I can be prepared when the Division Order arrives? I understand that time is a critical factor? Is there a completed sample Division Order available so I can get an idea of what is good or bad to be on the form?  All info will be appreciated.

    There seems to be a lot of questions we are supposed to have answers to but where to start?

     

    Also, the pay check stubs are up to we individuals to verify accuracy. Can we reserve the right to audit our royalty payments in the Division Order to make certain royalties are bing properly paid? How am I supposed to know what the oil company sold  my oil and gas for and to whom? And how to find out what the State of Texas is paying? How to verify info on paycheck stub? Lots of questions. Thank you.

     

    Sincerely, Eric and Carrol Gaspard

    Falls City, Karnes County, Texas
  • 02/19/2012 1:36 PM
    Quote
    Reply # 829560 on 828237
    Anonymous
    There is a Model Division Order available on this website.  At the top of the page, click RESOURCES, then FORMS.

    The RRC has free production information online.  Their site takes a little getting used to at first and you can expect a 4 month lag in reporting.
    Ann Whitchurch
  • 02/22/2012 10:22 AM
    Quote
    Reply # 832513 on 828237
    Anonymous
    As a follow-up, there is a Texas statute that governs what can and cannot be in a Division Order. Most reputable oil companies use the model form division order that is within this statute. However, occasionally a company will try to add a clause in their favor that they are not entitled to add. The statute is Section 91.401 (and following) of the Texas Natural Resources Code. If you want to give me an email I will send you a copy of the statute.
  • 02/27/2012 1:53 PM
    Quote
    Reply # 837304 on 828237
    Anonymous
    Be sure to check the royalty decimal:  acres owned / acres in unit x royalty chosen (e.g. 3/16 or .1875) = royalty decimal.  It if looks off, call the company that issued it, and ask them to walk you through how they arrived at the number, I have always found them to be very helpful.
  • 03/06/2012 9:38 AM
    Quote
    Reply # 849186 on 828237
    Carol Mitchell

    How do large companies that have 1,000's of investments in wells handle their paper remittance advices?  It seems to take a long time to validate, calculate and enter all of this information into an accounting system.  Any feedback would be helpful.
  • 03/23/2012 12:12 PM
    Quote
    Reply # 866904 on 828237
    Anonymous
    Anonymous
    As a follow-up, there is a Texas statute that governs what can and cannot be in a Division Order. Most reputable oil companies use the model form division order that is within this statute. However, occasionally a company will try to add a clause in their favor that they are not entitled to add. The statute is Section 91.401 (and following) of the Texas Natural Resources Code. If you want to give me an email I will send you a copy of the statute.

     

    Yes, we wouild love a copy of this statute. Really appreciate your help. Carrol and Eric

    silverbullettx@sbcglobal.net
 
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