Alaska Oil and Gas Division Order

• Category: Oil Gas and Minerals - Division and Transfer Orders
• State: Multi-State
• Control #: US-OG-323
• Format: Word; Rich Text

Description

This form is used to determine revenue payments and is issued to interest owners for a signature. The form includes the name of the interest owner, the interest for each interest owner, a legal description of the property, and the operator's name. The Alaska Oil and Gas Division Order is a legally binding document that regulates the distribution of oil and gas royalties and interest owners' shares in Alaska. This order is an essential part of the oil and gas industry in the state and ensures fair and proper allocation of resources. The Division of Oil and Gas, under the Alaska Department of Natural Resources, issues division orders to establish the proportionate ownership interests of different parties in an oil or gas production unit. These orders are crucial for maintaining transparency and accuracy in revenue distribution among a varying number of stakeholders. There are several types of Alaska Oil and Gas Division Orders, depending on the specific circumstances and requirements of a project: 1. Unit Tract Division Order: This type of division order is issued for a specific oil or gas production unit. It outlines the ownership interests of various parties involved in the unit, including leaseholders, royalty owners, and working interest owners. 2. Pooling Division Order: A pooling division order is issued when a well or production unit encompasses multiple lease agreements. It establishes the allocation of production and royalties among different leases, ensuring all parties receive a fair share based on their ownership interests. 3. Forced Pooling Division Order: In certain cases, where a leaseholder refuses to participate in a pooling agreement, the Division of Oil and Gas may issue a forced pooling division order. This order compels the non-consenting party to participate in the unit and assigns their proportionate share of production and royalties. 4. Redetermination Division Order: A redetermination division order is issued when there is a change in ownership interests due to the acquisition, sale, or transfer of leases or working interests. It reflects the updated ownership structure and ensures accurate distribution of royalties based on the new ownership arrangements. It is important to note that these division orders are legally binding and must be adhered to by all parties involved. Failure to comply may result in legal consequences. Regular updates and modifications to division orders are made to accommodate changes in ownership and reflect the current status of a unit or lease. In conclusion, the Alaska Oil and Gas Division Order is a crucial instrument in the management and allocation of oil and gas royalties in Alaska. By establishing ownership interests and providing transparency, it ensures fair distribution among stakeholders. The various types of division orders cater to different scenarios, including specific production units, pooling agreements, forced participation, and ownership changes.

The Alaska Oil and Gas Division Order is a legally binding document that regulates the distribution of oil and gas royalties and interest owners' shares in Alaska. This order is an essential part of the oil and gas industry in the state and ensures fair and proper allocation of resources. The Division of Oil and Gas, under the Alaska Department of Natural Resources, issues division orders to establish the proportionate ownership interests of different parties in an oil or gas production unit. These orders are crucial for maintaining transparency and accuracy in revenue distribution among a varying number of stakeholders. There are several types of Alaska Oil and Gas Division Orders, depending on the specific circumstances and requirements of a project: 1. Unit Tract Division Order: This type of division order is issued for a specific oil or gas production unit. It outlines the ownership interests of various parties involved in the unit, including leaseholders, royalty owners, and working interest owners. 2. Pooling Division Order: A pooling division order is issued when a well or production unit encompasses multiple lease agreements. It establishes the allocation of production and royalties among different leases, ensuring all parties receive a fair share based on their ownership interests. 3. Forced Pooling Division Order: In certain cases, where a leaseholder refuses to participate in a pooling agreement, the Division of Oil and Gas may issue a forced pooling division order. This order compels the non-consenting party to participate in the unit and assigns their proportionate share of production and royalties. 4. Redetermination Division Order: A redetermination division order is issued when there is a change in ownership interests due to the acquisition, sale, or transfer of leases or working interests. It reflects the updated ownership structure and ensures accurate distribution of royalties based on the new ownership arrangements. It is important to note that these division orders are legally binding and must be adhered to by all parties involved. Failure to comply may result in legal consequences. Regular updates and modifications to division orders are made to accommodate changes in ownership and reflect the current status of a unit or lease. In conclusion, the Alaska Oil and Gas Division Order is a crucial instrument in the management and allocation of oil and gas royalties in Alaska. By establishing ownership interests and providing transparency, it ensures fair distribution among stakeholders. The various types of division orders cater to different scenarios, including specific production units, pooling agreements, forced participation, and ownership changes.