Alaska Division Order

• Category: Oil Gas and Minerals - Division and Transfer Orders
• State: Multi-State
• Control #: US-OG-068
• Format: Word; Rich Text

Description

This is the model form which many companies now use. Alaska Division Order is a legal document that outlines the ownership interests and distribution of proceeds among all parties involved in the extraction of oil and gas resources within the state of Alaska. It serves as a crucial component of the overall production process, ensuring efficient and accurate allocation of revenues and royalties. The Alaska Division Order typically contains detailed information regarding the well or lease identification, such as the API number, lease name, operator name, and legal description of the property. It also includes the names and addresses of all mineral interest owners, their respective decimal interests, and the contact information of the parties responsible for administering the order. This document specifies the terms and conditions for the payment of royalties, overriding royalties, and working interests to the respective owners. It further specifies the payment frequency, whether monthly or quarterly, and provides instructions for updating ownership records, transferring interests, and resolving disputes. There are several types of Alaska Division Orders based on the ownership interests involved: 1. Royalty Division Order: This type of Division Order is executed between the mineral owner and the operator, specifying the proportion of royalties payable to the owner based on their ownership percentage. 2. Working Interest Division Order: This type of Division Order is executed between multiple working interest owners, determining their proportional share of costs, risks, and revenues associated with the drilling and production operations. 3. Overriding Royalty Interest Division Order: This type of Division Order is executed between the leaseholder and a third-party royalty owner, granting the latter a share of royalties above and beyond the usual lease royalty. Each type of Division Order plays a vital role in ensuring transparency, accuracy, and fairness in the allocation and distribution of proceeds from oil and gas production in Alaska. Compliance with these Division Orders is critical for operators and mineral interest owners to ensure that their rights and financial entitlements are protected and upheld.

Alaska Division Order is a legal document that outlines the ownership interests and distribution of proceeds among all parties involved in the extraction of oil and gas resources within the state of Alaska. It serves as a crucial component of the overall production process, ensuring efficient and accurate allocation of revenues and royalties. The Alaska Division Order typically contains detailed information regarding the well or lease identification, such as the API number, lease name, operator name, and legal description of the property. It also includes the names and addresses of all mineral interest owners, their respective decimal interests, and the contact information of the parties responsible for administering the order. This document specifies the terms and conditions for the payment of royalties, overriding royalties, and working interests to the respective owners. It further specifies the payment frequency, whether monthly or quarterly, and provides instructions for updating ownership records, transferring interests, and resolving disputes. There are several types of Alaska Division Orders based on the ownership interests involved: 1. Royalty Division Order: This type of Division Order is executed between the mineral owner and the operator, specifying the proportion of royalties payable to the owner based on their ownership percentage. 2. Working Interest Division Order: This type of Division Order is executed between multiple working interest owners, determining their proportional share of costs, risks, and revenues associated with the drilling and production operations. 3. Overriding Royalty Interest Division Order: This type of Division Order is executed between the leaseholder and a third-party royalty owner, granting the latter a share of royalties above and beyond the usual lease royalty. Each type of Division Order plays a vital role in ensuring transparency, accuracy, and fairness in the allocation and distribution of proceeds from oil and gas production in Alaska. Compliance with these Division Orders is critical for operators and mineral interest owners to ensure that their rights and financial entitlements are protected and upheld.