Massachusetts 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 Massachusetts Oil and Gas Division Order is a legal document issued by the Massachusetts Department of Energy Resources (DOER) that governs the distribution of oil and gas production revenues among various interest owners within a particular oil and gas well. The division order serves as a contractual agreement between the well operator and the interest owners, outlining the terms and conditions for the distribution of proceeds from oil and gas sales. It ensures accurate and fair allocation of revenue by specifying the percentage of ownership interest each party possesses and the proportionate share of the production revenue they are entitled to receive. Massachusetts Oil and Gas Division Orders are primarily used in the oil and gas industry to maintain accuracy and transparency in revenue distribution. There are different variations of division orders, each catering to specific circumstances and requirements. These include: 1. Basic Division Order: This is the standard division order used for normal oil and gas operations. It specifies the well's location, the names and addresses of the parties involved, the ownership interests, and the revenue allocation percentages. 2. Division Order for Joint Ventures: When multiple parties opt for a joint venture to develop oil and gas resources, a specialized division order is required. This document outlines the ownership interests, responsibilities, and revenue allocation for each party involved in the joint venture. 3. Division Order for Unitization: In cases where multiple oil and gas leases or wells are combined into a single unit, a division order for unitization is used. It outlines the ownership interests, royalty interests, and revenue allocation for each participating party in the unit. 4. Division Order Amendment: As circumstances change, such as new interest owners joining or existing ones leaving, a division order amendment is issued to incorporate these modifications. This document updates the ownership interests, revenue allocation percentages, and any other pertinent details to reflect the current situation accurately. 5. Division Order Revocation: In some cases, such as lease termination or well abandonment, a division order revocation may be necessary. It cancels the existing division order, ceasing revenue distribution among the interest owners. The Massachusetts Oil and Gas Division Order plays a crucial role in ensuring the fair distribution of revenue from oil and gas production, fostering transparency and integrity within the industry. Interest owners rely on this document to protect their rights and accurately receive their share of the proceeds from oil and gas operations.

The Massachusetts Oil and Gas Division Order is a legal document issued by the Massachusetts Department of Energy Resources (DOER) that governs the distribution of oil and gas production revenues among various interest owners within a particular oil and gas well. The division order serves as a contractual agreement between the well operator and the interest owners, outlining the terms and conditions for the distribution of proceeds from oil and gas sales. It ensures accurate and fair allocation of revenue by specifying the percentage of ownership interest each party possesses and the proportionate share of the production revenue they are entitled to receive. Massachusetts Oil and Gas Division Orders are primarily used in the oil and gas industry to maintain accuracy and transparency in revenue distribution. There are different variations of division orders, each catering to specific circumstances and requirements. These include: 1. Basic Division Order: This is the standard division order used for normal oil and gas operations. It specifies the well's location, the names and addresses of the parties involved, the ownership interests, and the revenue allocation percentages. 2. Division Order for Joint Ventures: When multiple parties opt for a joint venture to develop oil and gas resources, a specialized division order is required. This document outlines the ownership interests, responsibilities, and revenue allocation for each party involved in the joint venture. 3. Division Order for Unitization: In cases where multiple oil and gas leases or wells are combined into a single unit, a division order for unitization is used. It outlines the ownership interests, royalty interests, and revenue allocation for each participating party in the unit. 4. Division Order Amendment: As circumstances change, such as new interest owners joining or existing ones leaving, a division order amendment is issued to incorporate these modifications. This document updates the ownership interests, revenue allocation percentages, and any other pertinent details to reflect the current situation accurately. 5. Division Order Revocation: In some cases, such as lease termination or well abandonment, a division order revocation may be necessary. It cancels the existing division order, ceasing revenue distribution among the interest owners. The Massachusetts Oil and Gas Division Order plays a crucial role in ensuring the fair distribution of revenue from oil and gas production, fostering transparency and integrity within the industry. Interest owners rely on this document to protect their rights and accurately receive their share of the proceeds from oil and gas operations.