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.
Delaware Division Orders, also known as Oil and Gas Division Orders, are legal documents that outline the distribution of royalties and payments to various interest owners in oil and gas producing wells located in Delaware. These documents play a crucial role in establishing the rights and responsibilities of the parties involved in the production and sale of oil and gas. The Delaware Division Order contains detailed information about the landowners, operators, and interest owners who hold ownership rights to the lands where the oil and gas wells are situated. It includes important terms such as the legal description of the property, the tract name or number, and the exact location of the well(s). Key elements of the Delaware Division Order include: 1. Royalty Interest: The division order specifies the percentage of royalty interest that each interest owner is entitled to receive from the oil and gas production. This percentage is typically determined by the terms of the lease agreement between the landowner and the operator. 2. Payable to Address: The document also indicates the address where the payments and royalty statements should be sent. Interest owners need to ensure that their contact information is accurate and up-to-date to avoid any delay or loss of payment. 3. Decimal Interest: The division order outlines the decimal interest, which is the proportionate share of the total royalty interest. It is calculated based on the size of the ownership interest in relation to the whole. 4. Deductions and Expenses: It may specify any deductions or expenses that can be subtracted from the royalty payments, such as production costs, transportation fees, and taxes. These deductions are typically detailed in the lease agreement. 5. Types of Delaware Division Orders: There are different types of division orders commonly used in Delaware, including: — Individual Division Order: This is issued to individual interest owners who have a direct ownership interest in the wells. It specifies their share of the production and payment details. — Joint Division Order: In cases where multiple interest owners share an ownership interest, a joint division order is issued. It outlines the allocation of royalties and payments among the co-owners. — Title Curative Division Order: This type of division order is issued when there are title issues or disputes concerning the ownership of the oil and gas properties. It helps resolve these issues before distribution of royalties. In conclusion, Delaware Division Orders are essential legal documents that determine the distribution of royalties and payments among interest owners in oil and gas producing wells located in Delaware. These documents ensure fair and accurate accounting of the production revenue and establish the rights and obligations of all parties involved.
