Division order acarage does not match

I received my division order and the decimal percentage just didn't add up.  I called American energy in Oklahoma and they were very nice and gave me the following information.   My lease states 14.69 acre's, my property tax bill shows 14.6895 assessed and 15.01 actual, and my deeds all show 14.69 acres.  But in calculating my decimal percentage AEP says they re-surveyed the property and came up with 14.352 acres and that's what they are using in the formula.  My question is how can they short my land by .338 acres??  Especially when all records show 14.69 acres.  I am on the Jones pad, Nottingham township in Harrison county.  I am 100% in the unit.   I have not mailed back my division orders as of yet.  Should I get an attorney??  I'm thinking that if we are luck and get $1000 an acre I am losing $300 every month, $3600 a year.  Also the division order states effective date of 8-1-14.  The unit went online 6-16-14 and they have been trucking oil out at a rate of 2 (50,000) gallon semis per hour since, even though the pipe line is completed and pressure tested.  How do we know what they have taken prior to using the pipeline and trucks continue to roll by.

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Permalink Reply by Gunner Ostergard on October 28, 2014 at 4:58am

Here is a nice link explaining how to correctly convert percentage to decimal

 

http://www.mathsisfun.com/converting-percents-decimals.html

Permalink Reply by brat on October 28, 2014 at 9:00am

Yep, JL and Gunner are correct on the decimal conversion math.

Permalink Reply by Mike Fulper on October 28, 2014 at 7:57am

I cant make this any clearer for anyone  :)

Permalink Reply by JL on October 28, 2014 at 8:42am

I think you need to re-read your original post.

Drilling units aren't finalized before someone leases, unless they are a holdout. Some landowners may be in six units to have all their acreage drilled. Until the unit is developed and posted on the ODNR website, you have no idea what acreage you will have in any particular production unit. That isn't covered in a lease. Only a maximum unit size is covered.

At the top, you state " your PERCENTAGE OF ACRES ARE IN THE UNIT......lets say 2.5 % of Unit acres". Down below you state "How much land you got in the Unit  is a separate problem...."  It's the same thing. If you had 16 acres in a 640 acre unit, you would have 2.5% . If you lease covered 500 acres, you still only would have 2.5% in that unit.

Permalink Reply by WATCHER on October 28, 2014 at 11:21am

Your misunderstanding.  The unit is complete, the maps are done, it's drilled and it's pumping.  All of my 14.69 acres are listed on the platt map as in the unit and I'm surrounded by others in the unit.  However, now AEP is saying after a survey I don't have 14.69 acres I have 14.352 by their calculations and the shorted acres cause my decimal interest to drop and so will my royalties.  Waiting for AEP to send a copy of their survey to compare to mine.  I've had it surveyed 3 times in the last 20 years over property line disputes and it's always dam near the same 14.69 acres so I don't know how they are coming up with 14.352............

 

Permalink Reply by JL on October 28, 2014 at 12:10pm

Sorry Brian,

I was replying to Mikes post, not yours. It got off track. Your situation is entirely different.

Permalink Reply by Paul Martinelli on October 29, 2014 at 1:20am

Brian.....does your missing  .3 acres show up as being added to your neighbor's parcel?

Permalink Reply by Booger on October 29, 2014 at 8:57am

Brian - I believe your unit is the first for AEU in production...........I believe many are wondering how fair AEU will be with paying royalty.

aside from the missing acreage issue, it would be great if you could post again when you start receiving royalty...

also interesting you say this went into production on june 16 and they have been hauling out liquids every day since......but there was no reported production in the 2nd QTR. 

Permalink Reply by JL on October 28, 2014 at 3:58am

Gunner is correct.  Move the decimal two places. Using a multiplier of .25 is the same as 25%.

Permalink Reply by Gunner Ostergard on October 28, 2014 at 4:57am

Thank you JL.  Mike you are wrong,  you alway move the decimal two places when converting a percentage to a decimal.  I think they cover this in 6th grade

 

17% = .17

2% =  .02

 

 

Permalink Reply by Mike Fulper on October 28, 2014 at 7:56am

I guess EQT didn't go to 6th grade....

Maybe you cant read...

I am using EQT's figures...

I have my Division Order..

Adding a 0 gives the wrong decimal number

I cant make it any clearer for anyone....

I explained it in detail in the other post...

Do it yourself.. easy enough to follow what I did...

if you add a 0 then you diminish the value of the decimal interest..

Permalink Reply by Gunner Ostergard on October 28, 2014 at 10:57am

Mike,

Really,  just google what it the decimal value of 2.5%  We are not all lying to you,  it's just math.  And maybe EQT is wrong,  that is why you have to know your math

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