Hawaii 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 Hawaii Oil and Gas Division Order is a legal document that serves as a contract between the owners of oil and gas interests and the operator or producer of the wells in the state of Hawaii. It outlines the distribution and disbursement of revenues generated from the production of oil and gas resources. The Division Order is designed to protect the rights and interests of all parties involved in the extraction and production process. It typically includes detailed information such as the legal description of the producing well(s), the proportionate share of production allocated to each interest owner, and the necessary instructions for payment. In Hawaii, there are primarily two types of Oil and Gas Division Orders: 1. Working Interest Division Order: This type of division order is issued to the owners or entities that hold a working interest in the oil and gas well(s). A working interest owner contributes to the costs of drilling, production, and operational expenses in proportion to their ownership percentage. In return, they receive a portion of the revenues generated by the sale of oil and gas. 2. Royalty Interest Division Order: Royalty interest owners do not bear the burden of production costs. Instead, they receive a percentage of the revenue generated from the produced oil and gas as a royalty payment. These owners typically hold mineral rights on the property and earn a consistent income from the production without being responsible for operational expenses. Both types of division orders are essential for maintaining transparency and fairness in the oil and gas industry in Hawaii. They ensure accurate payments are made to the appropriate interest owners and provide a framework for resolving any disputes related to revenue distribution. The Hawaii Oil and Gas Division Order plays a crucial role in facilitating effective resource management and establishing a mutually beneficial relationship between interest owners and operators. It serves as a legally binding agreement that protects the rights and interests of all parties involved in the oil and gas production industry in Hawaii.

The Hawaii Oil and Gas Division Order is a legal document that serves as a contract between the owners of oil and gas interests and the operator or producer of the wells in the state of Hawaii. It outlines the distribution and disbursement of revenues generated from the production of oil and gas resources. The Division Order is designed to protect the rights and interests of all parties involved in the extraction and production process. It typically includes detailed information such as the legal description of the producing well(s), the proportionate share of production allocated to each interest owner, and the necessary instructions for payment. In Hawaii, there are primarily two types of Oil and Gas Division Orders: 1. Working Interest Division Order: This type of division order is issued to the owners or entities that hold a working interest in the oil and gas well(s). A working interest owner contributes to the costs of drilling, production, and operational expenses in proportion to their ownership percentage. In return, they receive a portion of the revenues generated by the sale of oil and gas. 2. Royalty Interest Division Order: Royalty interest owners do not bear the burden of production costs. Instead, they receive a percentage of the revenue generated from the produced oil and gas as a royalty payment. These owners typically hold mineral rights on the property and earn a consistent income from the production without being responsible for operational expenses. Both types of division orders are essential for maintaining transparency and fairness in the oil and gas industry in Hawaii. They ensure accurate payments are made to the appropriate interest owners and provide a framework for resolving any disputes related to revenue distribution. The Hawaii Oil and Gas Division Order plays a crucial role in facilitating effective resource management and establishing a mutually beneficial relationship between interest owners and operators. It serves as a legally binding agreement that protects the rights and interests of all parties involved in the oil and gas production industry in Hawaii.