Why do division orders matter?

You receive a division order and immediately sign it and throw it in the mail. Good plan?

Probably not. Will it get you a check more quickly than those who take time to review and verify the information? Yes. Can it create liability for you? Also, yes.

You should review division orders carefully to ensure you are being paid correctly based on the interest you own. Failure to do so can result in your being underpaid or overpaid. Both can be problematic. If you're underpaid for 50 years you may run into a statute of limitations issue when you try to recoup the amount that you were owed but not paid. If you're overpaid, you could be sued for the amount you received but weren't entitle to, plus interest.

Say you've been sending these division orders back for years without reading them and end up in a lawsuit. It's also very possible that the division order has a provision where you agree to indemnify the oil company not only for the amount you were overpaid but also any costs or attorney fees they incurred as a result of the lawsuit.

As you can see, the cost of not reviewing and/or modifying division orders before sending them back to the issuing company can be tremendous. Take some time up front to save time and money down the road. If you need assistance, head over to the Contact page and schedule a meeting.

AS ALWAYS THIS POST AND THE INFORMATION CONTAINED HEREIN ARE FOR INFORMATIONAL PURPOSES ONLY. THIS IS NOT LEGAL ADVICE AND DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP SINCE WE DO NOT HAVE ENOUGH INFORMATION REGARDING YOUR SPECIFIC CIRCUMSTANCES TO RENDER SUCH ADVICE. IF YOU NEED LEGAL ADVICE, PLEASE CONTACT A LICENSED ATTORNEY.