Maryland Division Orders are legal documents that establish the rights and obligations of parties related to the distribution of proceeds from oil and gas production in the state of Maryland. These orders serve as crucial agreements between the mineral rights owner and the operator responsible for drilling and extracting oil and gas resources. In Maryland, there are primarily two types of Division Orders that are commonly used: Non-Participating Royalty Interest (NPR) Division Orders and Operating Interest (OI) Division Orders. 1. Non-Participating Royalty Interest (NPR) Division Orders: NPRRI Division Orders are typically issued to mineral rights owners who do not wish to participate directly in the drilling and production activities. Instead, they solely receive a royalty interest, which is a percentage of the proceeds generated from the production. NPRRI owners have no responsibility for the development, operating costs, or any legal liabilities associated with the drilling operations. They simply receive an agreed-upon royalty rate specified in the Division Order. 2. Operating Interest (OI) Division Orders: — OI Division Orders are issued to mineral rights owners who choose to directly participate in the drilling and production activities. This means they bear a proportionate share of costs, both operational and capital expenses, and also receive a corresponding share of the revenue generated. — OI owners actively participate in decision-making processes related to the drilling and production, including exercising rights such as leasing, negotiating contracts, and managing their stake. Both types of Maryland Division Orders require detailed information about the respective ownership interests, including names, addresses, social security numbers, or taxpayer identification numbers. Additionally, the orders outline specific terms and conditions related to revenue distribution, well identification, lease terms, and other legal requirements. These documents must be signed and notarized to be deemed valid and enforceable. It is important to note that the specifics of Maryland Division Orders may vary depending on individual lease agreements, property rights, and governing regulations. Therefore, it is recommended to consult with an attorney or legal professional who specializes in oil and gas law to ensure compliance and protection of rights when dealing with Maryland Division Orders.