Since the price downturn, Oil and Gas operators have skimped on Division Order Title ("DOTO"). DOTO checks the decimal interest calculations for each Lessor. A lessor essentially is the Landowner. Division of Interest decimals are calculated by taking your unit acreage divided by the total unit acreage. This number is often referred to as the TPF. The Operator then takes the TPF and multiplies it by the Royalty Interest. This summation equals your decimal interest calculation. Often times, Operators have division Order Analysts calculate these royalties. Such positions, only require a high school degree. These numbers are usually wrong. A landowner receives a 40 page royalty statement that has a long decimal and how they reached your "Royalty Payment". These numbers usually looks like this - .0044838222834. How are you supposed to know whether these numbers are correct? Do you know the implications of having a wrong decimal interest calculation? You could be losing hundreds of thousands of dollars from a wrong decimal interest calculation.  

           Before the downturn in prices, the Operators would have top law firms such as Babst Calland and Vorys check the numbers. They would pay a large sum of money to reach the correct decimals. Nowadays, the operators are not receiving Division Order Title Opinions. They replace Oil and Gas Lawyers with high school educated division order analysts. 

          The new fire that is churning amongst landowners is audits. Landowners become more and more sophisticated to the Operators games, ie. Chesapeake energy. An audit makes the oil and gas operator check your decimal interest calculation diligently. You are legally entitled to audit the Operator. If the Operator does not comply with such audit, you can sue the Operator by hiring an Oil and Gas Attorney. There are audits and law suits being filed left and right because the Operator cannot prove the decimal interest calculations are correct. They only have an excel spreadsheet with over 75 decimals on it. There is nothing being the excel spreadsheet calculations. During the discovery phase of a lawsuit, the landowner can crush the Operator by making them produce records that describe and explain the decimal interest number. They usually will hire a law firm and accounting firm to calculate the decimals again. YOU ARE ENTITLED TO THIS. Audit your Operator. This is the only way that we can get the Operator to change their lazy ways. The operators need to order Division Order Title. Call your local Landman and demand an audit!!!

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