Division order acarage does not match

I received my division order and the decimal percentage just didn't add up.  I called American energy in Oklahoma and they were very nice and gave me the following information.   My lease states 14.69 acre's, my property tax bill shows 14.6895 assessed and 15.01 actual, and my deeds all show 14.69 acres.  But in calculating my decimal percentage AEP says they re-surveyed the property and came up with 14.352 acres and that's what they are using in the formula.  My question is how can they short my land by .338 acres??  Especially when all records show 14.69 acres.  I am on the Jones pad, Nottingham township in Harrison county.  I am 100% in the unit.   I have not mailed back my division orders as of yet.  Should I get an attorney??  I'm thinking that if we are luck and get $1000 an acre I am losing $300 every month, $3600 a year.  Also the division order states effective date of 8-1-14.  The unit went online 6-16-14 and they have been trucking oil out at a rate of 2 (50,000) gallon semis per hour since, even though the pipe line is completed and pressure tested.  How do we know what they have taken prior to using the pipeline and trucks continue to roll by.

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Permalink Reply by Paul Martinelli on October 27, 2014 at 9:53am

I would get the property surveyed and present that to AEP.

It is impossible that they are trucking out 100,000 gallons of oil per hour....but I wish it were true. Even 50,000 gallons a day   would be a great well.

Permalink Reply by cj wyalusing on October 27, 2014 at 10:25am

#1 DON'T SIGN THE DIVISION ORDER UNTIL YOU GET IT STRAIGHTEND OUT  !

#2 LOOK IN AUBREYS POCKETS

#3 A TRACTOR TRAILER CARRIES APROX 9 THOUSAND GALLON AND ANY MORE THEY COULD NOT DRIVE ON US ROADS.

#4 GET A GOOD OIL GAS ATTORNY ASK YOUR REGULAR ATT.IF HE COULD RECOMMEND ONE ,

#6 GOOD LUCK WITH AEP.

Permalink Reply by Mike Fulper on October 27, 2014 at 10:33am

Decimal point is MULTIPLIED this way...

What ever your Royalty % is on your LEASE...let say you get 17.5% Royalty

What ever.. your PERCENTAGE OF ACRES ARE IN THE UNIT......lets say 2.5 % of Unit acres

You will use .175%...and .25%....NOT   the other way....

THAT is your decimal interest FIGURE ONE.....

NOW... if you OWN all of your MINERAL RIGHTS....then your Decimal intersest is multiplied by ONE

if you own only half of your Mineral rights then you MULTIPLY the Decimal interest. by .5  POINT 5

People get confuse on % when mulitiply by decimals....

17.5% times 2.5% is WRONG........    .175 times .25  is CORRECT.. times % of Minerals owned...

Easy to figure

How much land you got in the Unit  is a separate problem....

Has nothing to do with O/G

Whatever your land is recorded at is what the LEASE you signed.. is gonna say...

It has to be on your Royalty lease....

You don't need a Divison order even to find out how much % you have in a lateral....

Hope this helps....

As far as them changing your % of land in unit...don't sound like they can do that...

Permalink Reply by WATCHER on October 28, 2014 at 1:58am

Update.  AEP is sending me a copy of the survey they performed.  My O/G attorney wants to compare to my last survey.  AEP states I am 100% in the pad, but according to their calculations I only own 14.352 acres not 14.69 acres.  That's the matter in question. One other update is I know how many semi's go by, but don't know how many gallons they hold as some of you have pointed out.  My mistake on gallons, but not how many trucks.  Not sure why they aren't using the pipeline.

Permalink Reply by evan on October 28, 2014 at 2:19am
Maybe they are hauling frack water/ brine.
Permalink Reply by WATCHER on October 28, 2014 at 2:33am

Not frack water or brine any more.  Wells in production since 6-16-14 and security says it's going to the refinery.  Not saying what's in it.  Oil, gas liquids ect???  trucks have slowed to around 1 every hour or so.  

Permalink Reply by Booger on October 28, 2014 at 3:32am

could still be some brine - some wells will put off brine for quite some time..........you should be able to tell by the hazmat placards on the trucks.....if they are flying flames, then it is the good stuff.

Permalink Reply by James Foster on October 28, 2014 at 5:55am

The oil will continue to be trucked out of the tanks.  Oil is not taken to refineries here by pipeline.  There will also continue to be water in the tanks and it must also be removed by truck.  Brine is not the correct term when referring to shale type wells.  The water is referred to as residual waste and that is what is marked on the trucks.  It must be disposed of in a disposal well.  Brine on the other hand can be spread on the roads in the winter.  The pipeline is for wet gas in this area.  It will go to cryogenic plant nearby Cadiz ??? to be separated into dry gas and liquids then the liquids will go on to processing plant in your are Scio.  All the liquids from Columbiana and Mahoning county also go to Scio.  You can not produce one without the other. If the well is in production you will get varying amounts of oil, gas which may be dry or wet depending on the area you are in.  The tanks on the pad are for oil, condensate, water all of which are trucked out.  If you can see the ODOT numbers on the truck that will tell you what they are hauling.

Permalink Reply by Booger on October 28, 2014 at 3:35am

maybe pipeline isn't connected yet........I saw where it runs over to the RHBSAN well that they are drilling now......not sure where they are going from there.

I would assume to cadiz - but some dudes from access midstream told me that they will be moving some AEU stuff north to scio......they currently looking for property to build a compressor station due north of the jones.

Permalink Reply by Gunner Ostergard on October 28, 2014 at 2:37am

Mike,

Your math is wrong.  2.5% does not equal .25

2.5% equals .025

 

 

Permalink Reply by Mike Fulper on October 28, 2014 at 3:34am

I double checked my Division order.. you don't add a zero..

the example above 2.5%   works the same as my 11.58%...   .1158

Permalink Reply by Mike Fulper on October 28, 2014 at 3:41am

No.. I checked again.. im right..

My Decimal interest on 580011 NCD3 IS......           .02026500

so you multiply my .175... ie 17.5% by    .1158...ie 11.58%

and you get 

.02026500

if you ADD a zero.....you get a WRONG Decimal number... .002026500

you don't add the 0..

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