This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.
Montana Division Orders are legal documents that outline the allocation and distribution of proceeds from oil and gas production in the state of Montana. These orders serve as a contract between the landowner or mineral rights' holder (the royalty owner) and the energy company responsible for drilling and extracting resources (the operator). One of the main purposes of Montana Division Orders is to establish the terms and conditions for royalty payments. The document specifies the percentage share of production revenues that the royalty owner will receive based on their ownership interest in the leased land. It also outlines various factors that may affect the calculations, such as taxes, transportation costs, and post-production expenses. There are several types of Montana Division Orders, each serving a specific purpose in the oil and gas industry: 1. Standard Division Order: This is the most common type of division order used in Montana. It contains the essential terms and conditions regarding royalty payment calculations and other relevant information. 2. Supplemental Division Order: In certain cases, additional agreements may be needed to clarify or modify specific terms in the standard division order. A supplemental division order is used for this purpose, making amendments or additions to the original agreement. 3. Division Order in Bankruptcy: If an operator files for bankruptcy, it can have implications for royalty owners. In such cases, a division order in bankruptcy is used to ensure that royalty payments are appropriately addressed and distributed during the bankruptcy proceedings. 4. Unitized Division Order: When multiple producing properties are consolidated into a single unit, an unitized division order is utilized. This order establishes how royalties will be allocated among the various leasehold owners within the unit and ensures a fair distribution of production proceeds. In summary, Montana Division Orders play a crucial role in ensuring fair and accurate distribution of royalty payments in the state's oil and gas industry. These legally binding documents establish the terms and conditions for royalty calculations and provide clarity on the allocation of proceeds. Different types of division orders, such as standard, supplemental, division order in bankruptcy, and unitized division orders, can be employed in various circumstances to address specific needs and situations.
