This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.
A division order in Alaska is a legal document that provides detailed information and instructions regarding the distribution of oil and gas royalties to interest owners. This document serves as an agreement between the operator or producer of oil and gas in Alaska and the interest owner or royalty recipient. Alaska Division Orders contain crucial information such as the legal description of the property, the names and addresses of the interest owners, and the proportional interest percentage each owner holds. These orders also specify the terms and conditions under which royalties will be allocated, including the payment schedule and method of calculation. In Alaska, there are different types of division orders, each serving a specific purpose: 1. Initial Division Order: This type of division order is the first one issued when a well begins its production. It outlines the initial distribution of royalties among the interest owners and sets the foundation for future royalty payments. 2. Amended Division Order: An amended division order is issued when there are changes or updates to the original division order. This could include changes in ownership, modifications to the interest percentages, or adjustments to the payment terms. 3. Transfer Division Order: A transfer division order is issued when there is a transfer of ownership rights or interests in a property. It ensures that the new interest owner receives the correct share of royalties based on the transferred interest percentage. 4. Supplemental Division Order: A supplemental division order is issued to address additional matters related to the original division order. This can include amendments to the payment terms, adjustments to decimal interest calculations, or any other relevant updates. 5. Shut-in Division Order: A shut-in division order comes into play when a well is temporarily shut down due to maintenance, repairs, or other operational reasons. It outlines the temporary suspension of royalty distributions until the well resumes production. Overall, Alaska Division Orders play a crucial role in ensuring fair distribution of oil and gas royalties to interest owners. The various types of division orders set the framework for accurate and timely payments while addressing any changes or circumstances that may arise during the production and leasing process in Alaska.
