Kentucky 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 Kentucky Oil and Gas Division Order is a legal document that outlines the specific terms and conditions for the distribution of proceeds from oil and gas production. It serves as an agreement between the oil and gas operator and the mineral interest owner(s), ensuring fair and accurate payments. The Division Order contains important information such as the operator's name, the legal description of the property, the effective date, the decimal interest for each mineral interest owner, and various calculations related to royalty payments. It also includes instructions on how to resolve any discrepancies or disputes that may arise. There are different types of Division Orders that may be used in Kentucky, depending on the specific circumstances and agreements involved. Some of these include: 1. Standard Division Order: This is the typical division order used for regular oil and gas production and distribution. It follows the standard format and contains all relevant information needed for accurate royalty payments. 2. Pooling Division Order: If a property is subject to pooling or unitization, where multiple mineral interest owners' rights are combined to create a larger production unit, a pooling division order may be used. It outlines the specific terms and conditions for the distribution of proceeds within the designated unit. 3. Non-Participating Royalty Interest (NPR) Division Order: In cases where the mineral interest owner only holds royalty rights and not working interests, a non-participating royalty interest division order may be used. It defines the royalty interest and the corresponding payment terms. 4. Overriding Royalty Interest (ORRIS) Division Order: Similar to an NPR division order, an overriding royalty interest division order is used when the mineral interest owner retains a specific percentage of royalty out of the working interests. It outlines the terms and conditions for this specific type of interest. The Kentucky Oil and Gas Division Order plays a crucial role in ensuring fair distribution and accurate payments to mineral interest owners. It provides clarity and transparency, protecting the rights and interests of both the operator and the owners.

The Kentucky Oil and Gas Division Order is a legal document that outlines the specific terms and conditions for the distribution of proceeds from oil and gas production. It serves as an agreement between the oil and gas operator and the mineral interest owner(s), ensuring fair and accurate payments. The Division Order contains important information such as the operator's name, the legal description of the property, the effective date, the decimal interest for each mineral interest owner, and various calculations related to royalty payments. It also includes instructions on how to resolve any discrepancies or disputes that may arise. There are different types of Division Orders that may be used in Kentucky, depending on the specific circumstances and agreements involved. Some of these include: 1. Standard Division Order: This is the typical division order used for regular oil and gas production and distribution. It follows the standard format and contains all relevant information needed for accurate royalty payments. 2. Pooling Division Order: If a property is subject to pooling or unitization, where multiple mineral interest owners' rights are combined to create a larger production unit, a pooling division order may be used. It outlines the specific terms and conditions for the distribution of proceeds within the designated unit. 3. Non-Participating Royalty Interest (NPR) Division Order: In cases where the mineral interest owner only holds royalty rights and not working interests, a non-participating royalty interest division order may be used. It defines the royalty interest and the corresponding payment terms. 4. Overriding Royalty Interest (ORRIS) Division Order: Similar to an NPR division order, an overriding royalty interest division order is used when the mineral interest owner retains a specific percentage of royalty out of the working interests. It outlines the terms and conditions for this specific type of interest. The Kentucky Oil and Gas Division Order plays a crucial role in ensuring fair distribution and accurate payments to mineral interest owners. It provides clarity and transparency, protecting the rights and interests of both the operator and the owners.