Division orders from a well jointly owned by 4 companies.

I'm in a unit where the wells are jointly owned by 4 companies. (Anadarko (33%,Mitsui 16%, Chesapeake 33% and Staton oi 16%l) . Each company has the right to market the gas themselves.

When i get the division order should they list my  interest as 

my % of the unit * my Royalty percentage  * the gas company share of the unit?

or 

just my % of the unit * my Royalty percentage  . 

so far I've received 2 division orders. one each way.. which is correct??

Thanks for any info.

Ron g.

Views: 361

▶ Reply to This

Replies to This Discussion

Permalink Reply by Tom R on March 19, 2014 at 2:38am

    I'm no expert, so can't say what is correct, but I saw the same thing when I got DOs. Chesapeake is the one who drilled and operates the well, the "owner interest" on their DO calculated out to %ownership*royalty%. The DOs from the other partners added the % participation factor to the calculation. Not sure how critical these numbers may be. Once I started getting royalty payments the statements all list a distribution factor which is pretty close between all the companies but is actually higher than the "owner interest" number on any of the DOs.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service