New Mexico 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 New Mexico Oil and Gas Division Order is a legally binding document used in the state of New Mexico to regulate and govern the extraction, production, and distribution of oil and gas resources. This division order plays a crucial role in ensuring the fair distribution of royalties, ensuring proper well spacing, and maintaining accountability within the oil and gas industry. Keywords: New Mexico, Oil and Gas Division Order, extraction, production, distribution, resources, royalties, well spacing, accountability, industry. There are different types of New Mexico Oil and Gas Division Orders, which vary based on their specific purpose and application. Some of the most commonly known types include: 1. Standard Division Order: This type of order is used when production is established from a single well or well unit, and the division of royalties among mineral interest owners is determined based on the percentage of ownership. 2. Commoditization Agreement: This type of division order is utilized when multiple owners of mineral interests within a defined area agree to merge their respective interests into a single cooperative unit. It allows for efficient operations and the consolidation of resources. 3. Pooling Order: A pooling order is issued by the Oil and Gas Division to enable the pooling of contiguous tracts or leases for the purpose of drilling and production. It ensures the integration of various mineral interest owners into a single unit, facilitating effective resource extraction. 4. Unit Agreement: In cases where a common source of supply underlies multiple leases or tracts, a unit agreement may be established. This type of division order consolidates these leases into a single unit, enabling coordinated and efficient extraction operations. 5. Spacing Order: Spacing orders issued by the Oil and Gas Division determine the minimum distance required between oil or gas wells to avoid interference and maximize resource extraction. These orders ensure proper planning and allocation of drilling sites based on the geological characteristics of the area. 6. Integration Order: In situations where a mineral interest owner does not consent to a pooling or unit agreement, an integration order can be issued to include their interest against their will. This order ensures proper and fair distribution of costs and benefits among all parties involved. The New Mexico Oil and Gas Division Order, in its various forms, serves as a regulatory tool to ensure responsible and efficient extraction of oil and gas resources in the state, while protecting the rights and interests of all stakeholders involved.

The New Mexico Oil and Gas Division Order is a legally binding document used in the state of New Mexico to regulate and govern the extraction, production, and distribution of oil and gas resources. This division order plays a crucial role in ensuring the fair distribution of royalties, ensuring proper well spacing, and maintaining accountability within the oil and gas industry. Keywords: New Mexico, Oil and Gas Division Order, extraction, production, distribution, resources, royalties, well spacing, accountability, industry. There are different types of New Mexico Oil and Gas Division Orders, which vary based on their specific purpose and application. Some of the most commonly known types include: 1. Standard Division Order: This type of order is used when production is established from a single well or well unit, and the division of royalties among mineral interest owners is determined based on the percentage of ownership. 2. Commoditization Agreement: This type of division order is utilized when multiple owners of mineral interests within a defined area agree to merge their respective interests into a single cooperative unit. It allows for efficient operations and the consolidation of resources. 3. Pooling Order: A pooling order is issued by the Oil and Gas Division to enable the pooling of contiguous tracts or leases for the purpose of drilling and production. It ensures the integration of various mineral interest owners into a single unit, facilitating effective resource extraction. 4. Unit Agreement: In cases where a common source of supply underlies multiple leases or tracts, a unit agreement may be established. This type of division order consolidates these leases into a single unit, enabling coordinated and efficient extraction operations. 5. Spacing Order: Spacing orders issued by the Oil and Gas Division determine the minimum distance required between oil or gas wells to avoid interference and maximize resource extraction. These orders ensure proper planning and allocation of drilling sites based on the geological characteristics of the area. 6. Integration Order: In situations where a mineral interest owner does not consent to a pooling or unit agreement, an integration order can be issued to include their interest against their will. This order ensures proper and fair distribution of costs and benefits among all parties involved. The New Mexico Oil and Gas Division Order, in its various forms, serves as a regulatory tool to ensure responsible and efficient extraction of oil and gas resources in the state, while protecting the rights and interests of all stakeholders involved.