Advice needed - Division Order
Help needed! I received something called a division order in the mail from Chesapeake Operating, Inc. I think it has something to do with royalty payments, they want me to give them my SS#, home and work phone numbers. Now here is the deal - I never signed anything with them!!! I have called them 4 times since Friday and they are not calling me back. I am trying to find a lawyer or at least somebody with knowledge of the law to look everything over. Cannot even find somebody to give me the time of day with out me having to pay them. Since I not been offered any lease, I have no money to do that!
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Replies to This Discussion
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Permalink Reply by The_Baron on -
You have gotten a division order because you own a mineral interest in a producing unit.
You may be covered by an old lease and don't even know it. They may just be uninterested in leaseing you, but i doubt it.
Look at the interest on the DO. does it indicate you are UMI? or does it indicate you are covered by a lease unknown to you?
How long have you owned the property? How many acres do you have? How many acres are in the unit?
You are under no obligation to sign, you can still receive royalties without signing, but unless you provide a SSN# they are required by law to withhold a substantial amount of taxes. Don't be suprised that it may take some time to get through to CHk, they are a large company. i suggest (this is what works for me) emailing them. They will get to you.
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Permalink Reply by Tracy on
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I do not see UMI anywhere in the paperwork. I have 2 lots with total of 3.66 acres. this thing states unit acres are 627.920000. I have owned the property for almost 2 years now. there is BPO Lse NRI/RI and BPO Unit Int on this thing with numbers under them.
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Permalink Reply by Tracy on
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Which one, there are 3, one I figured out is acreage, the others I don't know what they are for.
0.16666667 is under BPO Lse NRI/RI and 0.0097146 is under BPO Unit Int.
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Permalink Reply by KAYBABY on
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Ok, here goes. Divide your acreage (3.66) By unit acreage (627.92) = .0058287. Then multiply that answer by .1666666 (1/6th) (.0058287 x .16666666) which is apparently the royalty called for in the lease. The answer is 0.0009714. This answer has one more "0" that your figure. Have you typed it correctly?
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Ok, your decimal interest within the unit is figured by dividing your acreage (3.66) by total unit acreage (627.92). Then multiply that answer by .1666666 (which is 1/6th) and that one sixth should be the lease royalty figure set out in the lease which covers this 3.66 acres. The is the method universally used throughout the industry to figure royalty interests of mineral owners.
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Permalink Reply by Spring Branch,mineral owner on
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You said you have owned the property for almost two years. It is highly likely that you bought the property with minerals and subject to an oil & gas lease signed by the previous owner. A trip to the courthouse should tell you everything you need to know, Duke. You said you are in T17, what is the Range?
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Permalink Reply by Dion Warr, CPL on
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Duke:
Check the previous owner's name in the records. Run your name vendee in the conveyance index (ask, a deputy clerk should be able to point you to the indices (computer or index books)) from present to when you bought the property. You should come across your sale(s). Run the name(s) of the seller(s) from that date. Chances are if you have ended up with the minerals, you will not have to run backwards in time more than 5 - 10 years. If those people have not sold to anyone else in that time, run their names vendor for that period of time to see if they signed a lease. If they signed a lease that contained your property, and they sold it to you without reserving minerals, you bought surface and minerals, subject to the lease.
It would help if you put a section, township AND range so that folks can look up the production history in the section. It can give a lot of clues as to what is going on before you even hit the courthouse. -
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Permalink Reply by Bobi Carr ("parker") on
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It looks like he is in Section 30, Township 17N, Range 11 West.
If that is correct the serial number for the well is #238892. -
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