Hawaii 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. A Hawaii Division Order refers to a legal document that outlines the ownership interests and distribution of proceeds from an oil and gas lease or well within the state of Hawaii. Following the exploration and drilling process for oil and gas resources, a division order serves as a crucial tool to regulate and allocate revenues generated from production activities in an organized and equitable manner. The purpose of a division order is to provide a comprehensive breakdown of the various ownership interests associated with a particular oil or gas well, providing clarity and ensuring accurate distribution of payments among multiple stakeholders. Keywords: Hawaii, Division Order, ownership interests, distribution of proceeds, oil and gas lease, well, exploration, drilling, revenues, production activities, stakeholders. Types of Hawaii Division Orders: 1. Standard Division Order: This is the most common type of division order in Hawaii. It provides a detailed breakdown of the ownership interests of the different parties involved, including the mineral rights owners, royalty owners, and working interest owners. It specifies the decimal interest or fraction each party holds in the production, which determines their share of the proceeds. 2. Modified Division Order: In certain cases, modifications may be made to the standard division order. For instance, if there are multiple entities or individuals sharing a particular interest, a modified division order may be issued to reflect the specific arrangement and calculations involved. The modified division order ensures accurate distribution of proceeds based on the modified terms and conditions agreed upon by the parties involved. 3. Allocation Division Order: In some instances, there may be a need for an allocation division order. This type of division order is implemented when there is a need to allocate production proceeds based on specific contractual agreements, such as joint ventures or partnerships. The allocation division order determines the exact percentages or proportions of proceeds that each party is entitled to, based on their individual contributions and agreements. 4. Unit Division Order: A unit division order is issued when multiple oil or gas wells are geographically located within a specific unit or area. In such cases, the division order specifies the allocation of proceeds from each well within the designated unit, considering factors such as well production rates, the distance between wells, and individual ownership interests. This ensures fair and equitable distribution of revenues among all parties involved. In conclusion, a Hawaii Division Order serves as a vital legal document in the oil and gas industry within the state, regulating the ownership interests and distribution of proceeds. It ensures transparency, accuracy, and fairness in the allocation of revenues generated from production activities, benefiting all stakeholders involved.

A Hawaii Division Order refers to a legal document that outlines the ownership interests and distribution of proceeds from an oil and gas lease or well within the state of Hawaii. Following the exploration and drilling process for oil and gas resources, a division order serves as a crucial tool to regulate and allocate revenues generated from production activities in an organized and equitable manner. The purpose of a division order is to provide a comprehensive breakdown of the various ownership interests associated with a particular oil or gas well, providing clarity and ensuring accurate distribution of payments among multiple stakeholders. Keywords: Hawaii, Division Order, ownership interests, distribution of proceeds, oil and gas lease, well, exploration, drilling, revenues, production activities, stakeholders. Types of Hawaii Division Orders: 1. Standard Division Order: This is the most common type of division order in Hawaii. It provides a detailed breakdown of the ownership interests of the different parties involved, including the mineral rights owners, royalty owners, and working interest owners. It specifies the decimal interest or fraction each party holds in the production, which determines their share of the proceeds. 2. Modified Division Order: In certain cases, modifications may be made to the standard division order. For instance, if there are multiple entities or individuals sharing a particular interest, a modified division order may be issued to reflect the specific arrangement and calculations involved. The modified division order ensures accurate distribution of proceeds based on the modified terms and conditions agreed upon by the parties involved. 3. Allocation Division Order: In some instances, there may be a need for an allocation division order. This type of division order is implemented when there is a need to allocate production proceeds based on specific contractual agreements, such as joint ventures or partnerships. The allocation division order determines the exact percentages or proportions of proceeds that each party is entitled to, based on their individual contributions and agreements. 4. Unit Division Order: A unit division order is issued when multiple oil or gas wells are geographically located within a specific unit or area. In such cases, the division order specifies the allocation of proceeds from each well within the designated unit, considering factors such as well production rates, the distance between wells, and individual ownership interests. This ensures fair and equitable distribution of revenues among all parties involved. In conclusion, a Hawaii Division Order serves as a vital legal document in the oil and gas industry within the state, regulating the ownership interests and distribution of proceeds. It ensures transparency, accuracy, and fairness in the allocation of revenues generated from production activities, benefiting all stakeholders involved.