DIVISION ORDER LETTERS ??

People around me have been getting division order letters but me and others have not. THe division orders are from petrahawk. So it would seem they all sighned with Petrahawk. The rest of us sighned with CHK and they are the ones who drilled our well. Will the people who sighned with CHK get a division order also?????

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Permalink Reply by RJ on February 24, 2012 at 16:27
I would say they should go by the lease you have.
Permalink Reply by Larry L on February 24, 2012 at 16:02

2006 Louisiana Laws - RS 31:138.1 — Division order; precedence of lease; penalties for failure to pay royalties due

§138.1.  Division order; precedence of lease; penalties for failure to pay royalties due

A.  For the purposes of this Article, a "division order" is an instrument setting forth the proportional ownership in oil or gas, or the value thereof, which division order is prepared after examination of title and which is executed by the owners of the production or other persons having authority to act on behalf of the owners thereof.  

B.  A division order may not alter or amend the terms of the oil and gas lease.  A division order that varies the terms of the oil and gas lease is invalid to the extent of the variance, and the terms of the oil and gas lease take precedence.  

C.  The execution of a division order is not a condition precedent to receiving payment from a lessee.  The lessee shall not withhold royalty payments because his lessor has not executed a division order.  

D.  If the lessee fails to pay royalties solely because his lessor has not executed a division order as defined in this Article, the court shall award as damages double the amount of royalties due, legal interest on that sum from the date due, and reasonable attorney's fees.  However, if the lessor fails to supply the name, address, and tax identification number upon written request of the lessee, the lessee's failure to pay royalties shall be deemed reasonable.  

Acts 1992, No. 1110, §1.  

Permalink Reply by RJ on February 24, 2012 at 16:24
TODAY around noon I Got notification from CHK that another division order is on the way for folks in our lease. We will now also be in the tucker 32-17-15. This well has been in production a couple years. WELL past its high production first year. Will CHK give us backpay from production start up or begin paying us when the division orders come out. NOT what you would call high production well like it started out.They said this would fill the 2% shortage in the division orders. This just keeps getting better.
Permalink Reply by Larry L on February 25, 2012 at 0:33

They should have sent us the DO for this Well over a year ago and been paying us royalties on a monthly basis. Now it is catch up time. Our Unit Interest x Production since June 2010 + interest. Then it should be monthly.

FYI..The Tucker 32-17-15 is right on Shirley Francis east of Kimberly. It has a long horizontal lateral that runs north from the bore site almost the length of the section.

Permalink Reply by RJ on February 25, 2012 at 5:32

WEll if they do pay us for the 2010 production then Im ok with that. But if they just plug us in on the well as it is producing now (if any) then IM not good with that. Would think they would have to as you say, Go back to 2010 when the well production was high rather then just go with the well production now which is far lower!!! WE just keep on breaking new ground here.lol I expect them to pay us backpay from 2010. Only logical choice. However how do they establish a start pay date? The 30 well was not even done then. Be nice if they could just make units then plug them into a well that has dropped in production rather then a high new well with much higher production. Nice for CHK not the owners. ( Community Lease) Very strange!!!

Permalink Reply by Larry L on February 25, 2012 at 6:21

You have a right to be paid for your Unit Interest in ANY and ALL Wells you PARTICIPTE in from the date of the LEASE SIGNING (Oct 2008) until that Well no longer produces! CHK has a responsibilty to start payment 120 days after the production started (not when it was drilled) on each Well.

With the possibilty of up to 8 wells on each of the three sections we are discussing (ie 30, 31, 32) there is a potential for production from up to 24 wells over the life of the lease. Each time a new well is drilled and starts producing CHK has up to 120 days to start paying the royalty owners, and then month by month.

Here is the Sonris Info and Production records for each of these three Wells, Copy and paste and save as Favorites so you can verify and monitor production.

 

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2...

 

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2...

 

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2...

Permalink Reply by DrWAVeSport Cd1 on February 25, 2012 at 7:13

Larry L,

...  This busts wide open the "myth"  that CHK only takes "advantage" of their Unleased Mineral Owners...  Looks like CHK %$&&*** their ROs too.... 

...  And not just per their ROs' royalty check "deducts."

IMHO

DrWAVeSport Cd1 2/25/2012

 

Permalink Reply by Larry L on February 25, 2012 at 14:00

My "logo" says it all... Eyes wide Open!!!!!!!!

Permalink Reply by Spring Branch,mineral owner on February 25, 2012 at 7:28

They will pay you from 1st production on each well where you have a valid royalty interest.

Permalink Reply by Larry L on February 25, 2012 at 13:59

Yes...BUT....according to the terms you AGREED to in your lease. You need to learn to read and understand the lease you signed. I know it seems frustrating at first..but so was English when you were a child!

Permalink Reply by Lacy on March 4, 2012 at 4:58

I received division orders for 31-17-15 and 30-17-15. Because of the confusion I have not sent them back yet but I still received my first royalty check on Friday. Both sections are listed on the statement.

Permalink Reply by RJ on March 4, 2012 at 5:09

They will pay you without a Division order. CHK should be sending out Division orders for Section 32 for people in 30 and maybe 31. This is supposed to correct the 2% shortage in total acres the Divisions orders show if you add them up. IT will be a very small % of your total lease land. When added to your current Division orders your the total should add up to what you leased. So you will have interest in 30,31 and 32. Section 32 has been going since June 2010 so they will have to pay from that date to now.

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