Pleasants County, WV
All things pertaining to leasing, drilling and production in Pleasants county.
Pleasants County Royalty
Jay-Bee Oil & Gas has drilled a well and apparently I am due my first royalty check. I called them last week to get a status as to what was going on, since there was a new well drilled within a mile of my property. They said that I was due royalty, but needed a Division Order signed before they can pay me. They emailed me the Division Order, I need to sign it and get it notarized, and send it back to them.
I have several questions, but am getting ready to leave for a couple weeks, so I want to wait until I get back to discuss my questions with Jay-Bee.
But, my first question maybe someone can answer for me. How binding is the Division Order to what my royalty be? If I go ahead and send it to them, can I challenge it, if I need to, when I return and have time to do the research? Or, should I wait until after I do the research to sign the Division Order?
I know there is other questions, but I am going to be gone for two weeks, and don't really have the time to get into it now.
Thanks in advance. Denver Davis
Nancy Mosley
Since I haven't seen your division order, I can't comment on it specifically. However, I am aware that some companies add language to a division order that changes things with your lease terms. I believe (not a lawyer) that the companies need a division order to "divide" the royalty payment for a well. If you own 100% of the royalty interest in all the acreage in the well, you are entitled to 100% of your royalty percentage. Etc.
The National Association of Division Order Specialists have a model division order form available on their website. As I understand it, you can download one and fill it in with your information and send it in instead of the one provided by the company.
Maybe someone else can add or correct information.
Of course, determining the correct amount (%) of the well that should come to you is more complicated. You need a declaration of pooling to see how many acres in the pool (total acreage for that well) your particular tract has, not necessarily your full leased acreage. Then you need to determine how much of the royalty on that tract you own. You might share an interest with several or many family members or other owners. And you need to know what royalty % your lease calls for.
If you have more questions, ask here and someone can probably help. Don't rush this.
Aug 29, 2023
Kyle Nuttall
Hi Denver! I always make a few changes to DOs. They always want you to certify that the decimal interest is correct. That's a little disingenuous of them as you don't have all the necessary numbers to make that calculation. I always cross off the word "certify" and initial in the margin next to it. There's usually some language that says you'll either pay them back or indemnify them for any overpayments, or something along those lines. I cross that out, too, and initial next to it. I haven't seen a lot of JayBee DOs, so I don't remember all of their language off the top of my head. I'd want to take a look at the actual document because I'm remember that there are a couple other things that JayBee includes that you really shouldn't sign off on. I just don't remember exactly what they are.
Sep 6, 2023