Division Order Question

Has anyone refused to sign a division order that states Chesapeake will take out production costs?

If so what happened?

Has anyone send in a different division order than what was sent to them, If so what happened?

Thanks for the input.   I am trying to get all my ducks in a row before we get the thing.  

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0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on December 13, 2013 at 7:06am

If you don't sign it they won't pay you.  Period.  CHK's division order department is a total dumpster fire.  Are they claiming deductions that are unauthorized by your lease?

Permalink Reply by Sherre Boyanowski on December 13, 2013 at 7:22am

Anonymous,

     Your lease or operating agreement determines if you will have production costs taken out ( unless Chesapeake just does what they want to anyway).

 

     The Division Order just gives you a Payee number, description of your property, decimal interest, whom and where the royalties should be paid, and you give them your tax ID number. You should also send them a W-9 unless you wish for them to withhold 28% federal tax. This is what you send back to the O & G Company to get paid

 

     If you live in Pa., you do not have to sign a division order to get paid.

 

    If you do not like the division order that they sent you, you can go to the NARO website and print off a copy of the NADOA Model Form Division Order. This is a very basic form that was adopted, that when filled in, gives them all the info they need to pay you.

   

     A division order will need to be sent to each O & G company that is involved in your well. I have 4 for each well that I am in.   Be sure to make copies and keep track of dates, times, and the person you talk to if you have to contact any of the companies.

     Hope this answers your question.

Permalink Reply by Anonymous on December 13, 2013 at 11:01am

I know that  Chesapeake adds a paragraph that states they may take production costs out of royalties.  My lease states no productions costs may be taken out of my royalties.  If I get a division order like that can I send the NARO one?   Do they have to honor it?    That is basically my question.   I am in Ohio

Also, I thought if you did not sign a division order you still get paid but they take taxes out.   Wouldn't you get that back next tax year?   I am trying to figure out how not to get ripped off before division orders arrive.  

thanks 

Permalink Reply by Nancy Mosley on December 13, 2013 at 1:51pm

I haven't done this with Chesapeake, but did for Murvin & Meier who tried that in WV. I go the NARO one, filled it in, sent a brief letter with it saying that a division order should not change terms of lease, and they have been paying properly.

Permalink Reply by JK on December 13, 2013 at 2:32pm

Due to the trust factor with CHK we did not sign the division order form.

We have had many issues with CHK and will not sign anything they send.

We have zero deductions leases and you can not get a straight answer from anyone.

As often as today I was told they are deperately trying to sell everything.

We did not receive our check for September and October because there was not enough production.

We have 3 wells and with regulators placed by Dominion Hope and there isn't going to be any production. These wells are only running a couples of hours a day if that.

We feel SO duped..

 

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on December 13, 2013 at 5:17pm

"We have zero deductions leases and you can not get a straight answer from anyone."

Welcome to the wonderful world of being a CHK royalty owner.  

Permalink Reply by Philip Brutz on December 13, 2013 at 3:48pm
Permalink Reply by Anonymous on December 15, 2013 at 5:00am

Thank you for the link

Permalink Reply by markkot on December 15, 2013 at 6:34am

thanks, Philip.  good info to be aware of....  I'm still unleased (Crawford Co - PA), but you can never know too much when it comes to O&G leasing.  thanks, again.

Permalink Reply by thelma cathleen hays on December 14, 2013 at 12:46am

If you have a lease there in no need to sign division order. We have never signed or sent them in and our check still came. If you call out to their main office they will tell you there is not need to sign and send back. We also got one from Statoil and never signed it either and have been getting paid from them also. So I would never sign one, they have all your information they need to send your check out from your lease.

Permalink Reply by Charles Randolph on December 14, 2013 at 4:16pm

Now contrast this real life situation with Marcus Grayson's statment above.  I am so tired of all the BS on this site !!!

Permalink Reply by Trapper on December 14, 2013 at 5:19pm
I hear ya Charles! There are lots of people on here with questionable motives but you just have to trust you gut and try to find some wheat amongst all the chaff.

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