Arkansas 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 Arkansas Oil and Gas Division Order is an important legal document that governs the distribution of revenues from oil and gas production in the state of Arkansas. This document outlines the rights, obligations, and duties of the various parties involved in the production and sale of oil and gas. The Division Order serves as a contract between the oil and gas operator or producer and the royalty owners or interest holders. It establishes the terms and conditions for the payment of royalties and lays out the specific details regarding the allocation of production volumes, taxation, property rights, and other related matters. There are several types of Arkansas Oil and Gas Division Orders, each catering to specific situations and requirements. Some common types include: 1. Standard Division Order: This is the most basic and common type of Division Order, used to allocate royalties amongst multiple interest owners. It includes provisions for revenue distribution, payment procedures, and other standard terms. 2. Supplemental Division Order: This type of Division Order is used when there are changes or updates to the existing Division Order. It may be utilized to modify the allocation of production volumes, adjust royalty rates, or address any other changes to the original agreement. 3. Unitization Division Order: In cases where multiple oil and gas leases or tracts are combined into a single unit, an Unitization Division Order is employed. It governs the distribution of royalties and production across the participating tracts or leases within the unit, providing a fair and equitable allocation of revenues. 4. Division Order on Suspense: This type of Division Order is used when there are uncertainties or disputes regarding ownership of mineral interests. It places the revenues from production in a suspense account until the legal ownership is determined, ensuring that the correct parties receive their rightful share. In conclusion, the Arkansas Oil and Gas Division Order is a crucial document that establishes the framework for the fair distribution of royalties and revenues from oil and gas production. By addressing key aspects such as revenue allocation, payment procedures, and property rights, this legal instrument ensures transparency, accountability, and efficient operations within the oil and gas industry in Arkansas.

The Arkansas Oil and Gas Division Order is an important legal document that governs the distribution of revenues from oil and gas production in the state of Arkansas. This document outlines the rights, obligations, and duties of the various parties involved in the production and sale of oil and gas. The Division Order serves as a contract between the oil and gas operator or producer and the royalty owners or interest holders. It establishes the terms and conditions for the payment of royalties and lays out the specific details regarding the allocation of production volumes, taxation, property rights, and other related matters. There are several types of Arkansas Oil and Gas Division Orders, each catering to specific situations and requirements. Some common types include: 1. Standard Division Order: This is the most basic and common type of Division Order, used to allocate royalties amongst multiple interest owners. It includes provisions for revenue distribution, payment procedures, and other standard terms. 2. Supplemental Division Order: This type of Division Order is used when there are changes or updates to the existing Division Order. It may be utilized to modify the allocation of production volumes, adjust royalty rates, or address any other changes to the original agreement. 3. Unitization Division Order: In cases where multiple oil and gas leases or tracts are combined into a single unit, an Unitization Division Order is employed. It governs the distribution of royalties and production across the participating tracts or leases within the unit, providing a fair and equitable allocation of revenues. 4. Division Order on Suspense: This type of Division Order is used when there are uncertainties or disputes regarding ownership of mineral interests. It places the revenues from production in a suspense account until the legal ownership is determined, ensuring that the correct parties receive their rightful share. In conclusion, the Arkansas Oil and Gas Division Order is a crucial document that establishes the framework for the fair distribution of royalties and revenues from oil and gas production. By addressing key aspects such as revenue allocation, payment procedures, and property rights, this legal instrument ensures transparency, accountability, and efficient operations within the oil and gas industry in Arkansas.