Mississippi 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 Mississippi Oil and Gas Division Order is a legal document issued by the Mississippi Oil and Gas Board, which governs the allocation and distribution of proceeds from the production and sale of oil and gas in the state of Mississippi. It ensures that all parties involved in the production and sale of oil and gas receive their fair share of the profits. The Division Order contains relevant information regarding the ownership interests, royalty interests, and working interests of the various parties involved in the drilling, exploration, and production of oil and gas. It serves as a binding agreement between the mineral owners and the operators, outlining the terms and conditions of revenue distribution. Some essential details found in a Mississippi Oil and Gas Division Order include the legal descriptions and identification numbers of the oil and gas leases or units, the names and addresses of the operators and royalty owners, as well as the specific location and production details of the well. Additionally, the Division Order specifies the decimal interest or proportionate share of oil and gas revenues that each party is entitled to receive. The decimal interest is calculated based on factors such as the size of the ownership interest, royalty percentage, working interest, and any applicable costs or deductions. In Mississippi, there are different types of Oil and Gas Division Orders that cater to specific scenarios or circumstances. These can include: 1. Individual Division Order: This type of division order is used when a single individual or entity owns the oil and gas rights and decides to lease them to an operator for production. 2. Unit Division Order: In cases where multiple mineral owners have pooled their interests together to form a unit for the purpose of enhanced oil and gas recovery, a unit division order is used. It ensures equitable distribution of revenues to all participating parties. 3. Working Interest Division Order: A working interest division order is applicable when the operator of the well also holds a working interest, in addition to the mineral owners. It outlines the revenue shares between the operator and the mineral owners involved. It is important for both operators and mineral owners to carefully review and understand the terms stated in the Mississippi Oil and Gas Division Order before signing it. Any discrepancies or errors in the document can lead to disputes and hinder the smooth operation and revenue distribution of oil and gas fields in Mississippi.

The Mississippi Oil and Gas Division Order is a legal document issued by the Mississippi Oil and Gas Board, which governs the allocation and distribution of proceeds from the production and sale of oil and gas in the state of Mississippi. It ensures that all parties involved in the production and sale of oil and gas receive their fair share of the profits. The Division Order contains relevant information regarding the ownership interests, royalty interests, and working interests of the various parties involved in the drilling, exploration, and production of oil and gas. It serves as a binding agreement between the mineral owners and the operators, outlining the terms and conditions of revenue distribution. Some essential details found in a Mississippi Oil and Gas Division Order include the legal descriptions and identification numbers of the oil and gas leases or units, the names and addresses of the operators and royalty owners, as well as the specific location and production details of the well. Additionally, the Division Order specifies the decimal interest or proportionate share of oil and gas revenues that each party is entitled to receive. The decimal interest is calculated based on factors such as the size of the ownership interest, royalty percentage, working interest, and any applicable costs or deductions. In Mississippi, there are different types of Oil and Gas Division Orders that cater to specific scenarios or circumstances. These can include: 1. Individual Division Order: This type of division order is used when a single individual or entity owns the oil and gas rights and decides to lease them to an operator for production. 2. Unit Division Order: In cases where multiple mineral owners have pooled their interests together to form a unit for the purpose of enhanced oil and gas recovery, a unit division order is used. It ensures equitable distribution of revenues to all participating parties. 3. Working Interest Division Order: A working interest division order is applicable when the operator of the well also holds a working interest, in addition to the mineral owners. It outlines the revenue shares between the operator and the mineral owners involved. It is important for both operators and mineral owners to carefully review and understand the terms stated in the Mississippi Oil and Gas Division Order before signing it. Any discrepancies or errors in the document can lead to disputes and hinder the smooth operation and revenue distribution of oil and gas fields in Mississippi.