Encino (EAP) division orders ?

Does Encino (EAP) send out division orders before payment?  if so how long after the well is in production, before they send division orders out?

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Permalink Reply by paleface on May 30, 2025 at 8:39am

 check Landex

Permalink Reply by tacoma7583 on June 3, 2025 at 6:50am

I'm in Ohio so I don't think they use Landex,  EAP filed the unitization back in February and the well went into production March 3rd.   I wasn't sure if they actually sent out another document or eventually I'll just get a check in the mail..  

Permalink Reply by tacoma7583 on June 9, 2025 at 8:27am

I did get an email back from EAP eventually.  seems kind of of backwards that they are sending payments and then the division orders.

Thank you for your email regarding the division orders for these wells. After reviewing the wells, it looks like the division orders are to be sent out in July and your initial payment should be at the end of this month 

Permalink Reply by Dott on June 12, 2025 at 5:57am

I have a well with EAP in OHIO and I did get my first check before my division order.

I have had an O & G Attorney every step of the way and I asked him to review it because I have read that the Division Order can sometimes CHANGE  the language in your lease and it is binding. He said EAP DOES NOT require a landowner to sign it and will still continue to send checks.  I confirmed this with EAP Landowner office because some companies require it. So I never signed it and continue receiving my check and its been a year now. Also my attorney said the division order had language he would not approve but I did not ask for details since I was not going to sign it.

Also I pay my Attorney about $250.00 a month to review my Royalty Statements and glad I did. EAP did not pay me for one of the parcels and underpaid me on others. My Attorney had to send them his findings and his calculations. It took about 8 months for EAP to correct all the problem and give back pay.

Also it is true what they say about DECLINE CURVE. YIKES! The wells are in Southeast Ohio in the WET GAS area. The first check was beautiful and for the next 10 months checks declined 25% each month. I know many factors are involved but I read that wet gas wells have the steepest decline curve. Finally the decline has slowed a bit but I hope it will steady out at some point.

Good Luck!

Permalink Reply by tacoma7583 on June 12, 2025 at 6:33am

In the past with other dealings with other companies, we had to sign the division order before payment to verify that's where the payment should go to also.  

Permalink Reply by Dott on June 16, 2025 at 1:44pm

I just posted that EOG did or is going to  purchase Encino Leases. I've been told that Encino will cease to exist.

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