Maine 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. Maine Division Order is a legal document that outlines the ownership and allocation of production proceeds from an oil or gas well within the state of Maine. It is typically prepared by the company operating the well, known as the operator, and is sent to the various interest owners or royalty owners of the leased property. The Maine Division Order serves as a crucial agreement that establishes the rights and responsibilities of all parties involved in the extraction and production of oil or gas. The document contains detailed information about the well, such as its location, lease details, and production data. Keywords: Maine Division Order, ownership, allocation, production proceeds, oil well, gas well, operator, interest owners, royalty owners, leased property, extraction, production data. Types of Maine Division Orders 1. Standard Maine Division Order: This is the most common type of division order used in Maine. It outlines the proportional ownership interest of each party in the produced oil or gas and details the method of allocating the production proceeds. 2. Modified Maine Division Order: In some cases, parties may negotiate modifications to the standard division order to meet their specific requirements. These modifications could include changes in allocation percentages, payment terms, or other factors agreed upon by the operator and the interest owners. 3. Horizontal Maine Division Order: This type of division order is specific to horizontal drilling operations, which are becoming increasingly common in Maine. It addresses the unique challenges associated with horizontal wells, such as multiple landowners along the well bore, and provides a framework for allocation and payment distribution. 4. Joint Interest Maine Division Order: In situations where multiple parties have joint ownership of a producing oil or gas well in Maine, a joint interest division order is used. This type of division order defines the rights and responsibilities of each co-owner and establishes the framework for sharing production proceeds. Overall, Maine Division Orders are essential documents in the oil and gas industry, as they ensure transparency, fairness, and accurate allocation of production proceeds to all parties involved. It is crucial for interest owners and royalty owners to carefully review and understand the terms outlined in the division order, seeking legal advice if necessary, to protect their rights and interests.

Maine Division Order is a legal document that outlines the ownership and allocation of production proceeds from an oil or gas well within the state of Maine. It is typically prepared by the company operating the well, known as the operator, and is sent to the various interest owners or royalty owners of the leased property. The Maine Division Order serves as a crucial agreement that establishes the rights and responsibilities of all parties involved in the extraction and production of oil or gas. The document contains detailed information about the well, such as its location, lease details, and production data. Keywords: Maine Division Order, ownership, allocation, production proceeds, oil well, gas well, operator, interest owners, royalty owners, leased property, extraction, production data. Types of Maine Division Orders 1. Standard Maine Division Order: This is the most common type of division order used in Maine. It outlines the proportional ownership interest of each party in the produced oil or gas and details the method of allocating the production proceeds. 2. Modified Maine Division Order: In some cases, parties may negotiate modifications to the standard division order to meet their specific requirements. These modifications could include changes in allocation percentages, payment terms, or other factors agreed upon by the operator and the interest owners. 3. Horizontal Maine Division Order: This type of division order is specific to horizontal drilling operations, which are becoming increasingly common in Maine. It addresses the unique challenges associated with horizontal wells, such as multiple landowners along the well bore, and provides a framework for allocation and payment distribution. 4. Joint Interest Maine Division Order: In situations where multiple parties have joint ownership of a producing oil or gas well in Maine, a joint interest division order is used. This type of division order defines the rights and responsibilities of each co-owner and establishes the framework for sharing production proceeds. Overall, Maine Division Orders are essential documents in the oil and gas industry, as they ensure transparency, fairness, and accurate allocation of production proceeds to all parties involved. It is crucial for interest owners and royalty owners to carefully review and understand the terms outlined in the division order, seeking legal advice if necessary, to protect their rights and interests.