Question about Division Order
If this questions have been answered elsewhere in the site, first, please forgive the duplication, and second, please direct me to them.
I just received a division order today stating that I have 0.004846570 interest in a well that was drilled in my section. This seems about right to me based on the size of my property and my 25% royalty per my lease contract. The well is listed on SONRIS as having been completed on 10/23/08, but they don't have any production listed after 1/1/09 (has it listed for Oct, Nov, Dec 08 and Jan 01). I was beginning to wonder what had happened and just received the order today.
I didn't consult an O&G lawyer before signing my lease, and have since discovered that there were several things I should have included in my contract that I didn't. I signed well before the Haynesville "boom," though, so the price per acre was unfortunately a very good one for the time, but woefully low compared to what came after.
My questions to the knowledgeable "thought leaders" of this site are, is this usually how long it takes to receive one (6mo)? Should I consider having a lawyer review my division order before signing it? Are there pitfalls to avoid in signing it and is it even negotiable? And, what happens if I don't sign it?
Thanks in advance.
I just received a division order today stating that I have 0.004846570 interest in a well that was drilled in my section. This seems about right to me based on the size of my property and my 25% royalty per my lease contract. The well is listed on SONRIS as having been completed on 10/23/08, but they don't have any production listed after 1/1/09 (has it listed for Oct, Nov, Dec 08 and Jan 01). I was beginning to wonder what had happened and just received the order today.
I didn't consult an O&G lawyer before signing my lease, and have since discovered that there were several things I should have included in my contract that I didn't. I signed well before the Haynesville "boom," though, so the price per acre was unfortunately a very good one for the time, but woefully low compared to what came after.
My questions to the knowledgeable "thought leaders" of this site are, is this usually how long it takes to receive one (6mo)? Should I consider having a lawyer review my division order before signing it? Are there pitfalls to avoid in signing it and is it even negotiable? And, what happens if I don't sign it?
Thanks in advance.
Views: 42
Replies to This Discussion
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Permalink Reply by BirdDawg, plain ole' idiot on
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Tom,
Jim K was short and to the point, and gave you great advice. Its not unusual for it to take that long to get paid. Should be quicker, but unfortunately it isn't always. Often it takes time to get all of the title work done on the unit, but I always thought they should have that done sooner.
Just my opinion.
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Permalink Reply by The_Baron on -
In a traditional drilling program where the outcome is unkown, why spend ten grand on a DO until you know you need one. But I agree, with these HA wells, they are probally going to make a well. They have a better chance of mucking it than drilling a dry hole.
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Permalink Reply by DaddyT on -
Tom,
It took that long for me and it was well worth it. Your may be surprised at what you will receive. Good things are worth the wait. Go for it, Dude....
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Permalink Reply by Tom 30.16N.13W on
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Jim, thanks for the straight talk. BirdDawg, thanks for the elaboration. Both your opinions are appreciated. DaddyT, I hope I am pleasantly surprised, but I don't have my hopes up. It is just a vertical and it was not breaking any records between Oct and Jan! Thanks for the good luck wishes, though.
Tom
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