How to Submit Your Own Division Order
Review the division order carefully and identify every conflicting term., Using a ruler, strike through any term that conflicts with the terms of your lease., Carefully place your initials in the margin directly to the right or the left of the...
Step-by-Step Guide
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Step 1: Review the division order carefully and identify every conflicting term.
Be careful to not strike through the language allowing the company to sell your share of oil on your behalf, otherwise the division order can be rejected. , Each strike must have its own set of initials. If both husband and wife must sign the division order, each must put their initials close together in the margin beside each stricken line. , The division should be signed if it is correct, or not signed if the decimal is incorrect:
Sign the division order according to the instruction sheet they should have included when they mailed it to you, if you agree with the decimal shown on the division order.
If you have sold all or part of your interest in this well, or you have acquired additional interest in this well that is not reflected in the decimal shown in the division order, stop here. Call the number provided in the paperwork sent with the division order and tell them about the title changes.
If no title changes have occurred and if an IRS Form W-9 was included in the envelope with the set of division orders, be sure to fill that out and sign it. If husband and wife are on the division order, only the husband needs to fill out the W-9 form and give his Social Security Number in it, if his name is always listed first on the IRS 1040 Form filed each year.
Make any corrections to your address or misspelling of your name (but not a new name!) before returning the division order.
Never have a division order notarized. , Not all division orders require witness signatures and that is fine. , Keep the other copy of the signed division order for your records! Do not send both copies back to the oil company. They sent you two copies for the purpose of you keeping one for your records. , The oil company is required to communicate with you whether they accept, or reject, the division order reflecting all of the stricken language. To hasten that process, you should:
After exactly two weeks, call the telephone number provided in the instruction sheet or cover letter sent to you along with the division order. Have your copy of the division order with you.
If you must leave a message, be sure to have your copy of the division order in front of you when you leave the message.
State in the message (1) your name(s), (2) your owner number assigned to you and given in the division order, (3) the date you mailed the signed copy back to the oil company, and (4) give them your telephone number to call you back to verify that they received your signed division order.
Request that they return your call and tell you that the account has been placed in pay status, or will be placed in pay status.
Give them no more than 3 days to return your call.
If you have not received a call from them in 3 days, call them again, and repeat all of the information you gave them in the first call and request again that they call to verify receipt and acceptance.
After your second call, give them only 24 hours to respond.
If they have not responded, call every day for one full business week.
If still no response, call the company main number and ask to speak to the Land Administration Manager.
If still no response in 24 hours, send a letter by certified mail demanding that they place your account in pay status following receipt of your signed division order and give them 30 days to pay your royalties according to the terms of your lease or you will seek termination of the oil and gas lease.
If no payment has been received within 30 days, take all of your paperwork with you (including the certified letter green card signed by the oil company) to an attorney and pay to have the attorney send a demand letter. Very few companies allow royalty owner relations to get to this point before paying them, so an attorney is the last resort rarely needed. -
Step 2: Using a ruler
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Step 3: strike through any term that conflicts with the terms of your lease.
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Step 4: Carefully place your initials in the margin directly to the right or the left of the stricken language.
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Step 5: Sign the order if appropriate.
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Step 6: Make certain to have the division order witnessed by a neighbor
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Step 7: family member
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Step 8: or anyone who knows you
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Step 9: if the division order requires witness signature(s).
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Step 10: Return one copy of the signed division order to the oil company along with the signed W-9.
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Step 11: Wait for the results and follow up as needed.
Detailed Guide
Be careful to not strike through the language allowing the company to sell your share of oil on your behalf, otherwise the division order can be rejected. , Each strike must have its own set of initials. If both husband and wife must sign the division order, each must put their initials close together in the margin beside each stricken line. , The division should be signed if it is correct, or not signed if the decimal is incorrect:
Sign the division order according to the instruction sheet they should have included when they mailed it to you, if you agree with the decimal shown on the division order.
If you have sold all or part of your interest in this well, or you have acquired additional interest in this well that is not reflected in the decimal shown in the division order, stop here. Call the number provided in the paperwork sent with the division order and tell them about the title changes.
If no title changes have occurred and if an IRS Form W-9 was included in the envelope with the set of division orders, be sure to fill that out and sign it. If husband and wife are on the division order, only the husband needs to fill out the W-9 form and give his Social Security Number in it, if his name is always listed first on the IRS 1040 Form filed each year.
Make any corrections to your address or misspelling of your name (but not a new name!) before returning the division order.
Never have a division order notarized. , Not all division orders require witness signatures and that is fine. , Keep the other copy of the signed division order for your records! Do not send both copies back to the oil company. They sent you two copies for the purpose of you keeping one for your records. , The oil company is required to communicate with you whether they accept, or reject, the division order reflecting all of the stricken language. To hasten that process, you should:
After exactly two weeks, call the telephone number provided in the instruction sheet or cover letter sent to you along with the division order. Have your copy of the division order with you.
If you must leave a message, be sure to have your copy of the division order in front of you when you leave the message.
State in the message (1) your name(s), (2) your owner number assigned to you and given in the division order, (3) the date you mailed the signed copy back to the oil company, and (4) give them your telephone number to call you back to verify that they received your signed division order.
Request that they return your call and tell you that the account has been placed in pay status, or will be placed in pay status.
Give them no more than 3 days to return your call.
If you have not received a call from them in 3 days, call them again, and repeat all of the information you gave them in the first call and request again that they call to verify receipt and acceptance.
After your second call, give them only 24 hours to respond.
If they have not responded, call every day for one full business week.
If still no response, call the company main number and ask to speak to the Land Administration Manager.
If still no response in 24 hours, send a letter by certified mail demanding that they place your account in pay status following receipt of your signed division order and give them 30 days to pay your royalties according to the terms of your lease or you will seek termination of the oil and gas lease.
If no payment has been received within 30 days, take all of your paperwork with you (including the certified letter green card signed by the oil company) to an attorney and pay to have the attorney send a demand letter. Very few companies allow royalty owner relations to get to this point before paying them, so an attorney is the last resort rarely needed.
About the Author
Richard Harvey
Specializes in breaking down complex cooking topics into simple steps.
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