NARO ROCKIES CONVENTION June 14, 2024 By Cori Peth
Division Orders 101. This sounded like a relatively easy topic to cover for NARO, but as I thought about it, I had to take a step back. Having worked in oil and gas for almost two decades, I found it easy to take items like a Division Order form for granted! What did I need to cover and how could I keep it interesting? I see these forms constantly, but for many owners, it’s a brand-new concept. Being asked to sign a form can sound very official and even scary, especially coming from a big, bad oil company. What is it? Why do I have to sign it? Do I have to sign it? Oil and gas companies get such a bad rap from the media and Hollywood. I remember a man once called me and was asking some very strange questions about his lease. It was like he wanted me to get frustrated with him (I didn’t). It turned out he wasn’t even one of our owners, and he smugly ended the conversation with, “Well, I’ve been watching Dallas. So, I’m learning about all the ways you oil companies are trying to scam me.” Hold please. First and foremost, I want everyone to know that we Division Order Analysts are your friends. We’re here to answer your questions. We want you to understand what you own and most importantly, we want you to get your money! We love giving you money! It’s like playing Santa! Back to the NARO conference… After walking through the Division Order form, and hopefully unraveling its mysteries, we talked about timing
and why it can take several months to get those royalty checks. We also discussed some tips for communicating with your Analyst:
o Know your owner number o Keep a file with your paperwork
o Write down your questions before you call o Include your phone number, email address and physical address when you mail documents to us It was especially good to hear from the owners and better understand their concerns. They want to talk with us, to understand their decimal interest, and to be reassured that we take their questions seriously. This conversation confirmed we share the same goals and are on the same team. I’m grateful I had this opportunity, and am glad to know an organization like NARO exists to help bridge the gap between owners and analysts…
…and those big (not so bad) oil companies.
Avoid headaches from explaining the ins and outs of royalty ownership to your interest owners... ...Let us help! National Association of Royalty Owners PO Box 131090, Spring, TX 77393 www.naro-us.org Phone: 918-794-1660
• Fact-filled pamphlets and books
• Royalty management seminars
• Royalty owner helpline
• Web site education resources
7
G rowth T hrough E ducat i on - J uly / A ugus t / S ept ember 2024
Made with FlippingBook. PDF to flipbook with ease