Oklahoma 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. The Oklahoma Division Order is a legal document that plays a crucial role in oil and gas production operations in the state of Oklahoma. It serves as a contract between the owners of land or mineral rights (known as the "royalty interest owners") and the oil and gas company responsible for drilling and extracting resources (known as the "working interest owners"). The purpose of the Oklahoma Division Order is to outline the distribution of revenue from the sale of oil and gas produced on a specific tract of land. It details how the royalties will be calculated, the percentage of royalties each owner is entitled to receive, and the terms and conditions for payment. There are different types of Oklahoma Division Orders: 1. Standard Oklahoma Division Order: This type of division order outlines the standard terms and conditions for the distribution of royalties. It includes details about the owner's interest in the land, the royalty percentage, and the division order decimal. 2. Supplemental Oklahoma Division Order: This type of division order is used when there are multiple tracts of land or multiple owners involved. It provides additional information about the division of royalties among the various parties. 3. Pooled Oklahoma Division Order: This type of division order comes into play when multiple landowners agree to combine their interests and resources into a single drilling unit or a pooled unit. It outlines the proportionate share of royalties that each owner will receive based on their participation in the drilling project. 4. Shut-In Royalty Oklahoma Division Order: This type of division order comes into effect when there is a temporary cessation of production due to unforeseen circumstances or a lack of demand in the market. It specifies the royalties to be paid during the shut-in period. 5. Transfer of Interest Oklahoma Division Order: This type of division order is required when there is a transfer of ownership or change in the interest holder. It ensures that the revenue distribution is properly updated to reflect the new ownership or interest. Overall, the Oklahoma Division Order acts as a legal agreement to safeguard the rights and interests of both the royalty interest owners and working interest owners. It provides clear guidelines and transparency in revenue allocation, enabling a fair distribution of proceeds from oil and gas production in Oklahoma.

The Oklahoma Division Order is a legal document that plays a crucial role in oil and gas production operations in the state of Oklahoma. It serves as a contract between the owners of land or mineral rights (known as the "royalty interest owners") and the oil and gas company responsible for drilling and extracting resources (known as the "working interest owners"). The purpose of the Oklahoma Division Order is to outline the distribution of revenue from the sale of oil and gas produced on a specific tract of land. It details how the royalties will be calculated, the percentage of royalties each owner is entitled to receive, and the terms and conditions for payment. There are different types of Oklahoma Division Orders: 1. Standard Oklahoma Division Order: This type of division order outlines the standard terms and conditions for the distribution of royalties. It includes details about the owner's interest in the land, the royalty percentage, and the division order decimal. 2. Supplemental Oklahoma Division Order: This type of division order is used when there are multiple tracts of land or multiple owners involved. It provides additional information about the division of royalties among the various parties. 3. Pooled Oklahoma Division Order: This type of division order comes into play when multiple landowners agree to combine their interests and resources into a single drilling unit or a pooled unit. It outlines the proportionate share of royalties that each owner will receive based on their participation in the drilling project. 4. Shut-In Royalty Oklahoma Division Order: This type of division order comes into effect when there is a temporary cessation of production due to unforeseen circumstances or a lack of demand in the market. It specifies the royalties to be paid during the shut-in period. 5. Transfer of Interest Oklahoma Division Order: This type of division order is required when there is a transfer of ownership or change in the interest holder. It ensures that the revenue distribution is properly updated to reflect the new ownership or interest. Overall, the Oklahoma Division Order acts as a legal agreement to safeguard the rights and interests of both the royalty interest owners and working interest owners. It provides clear guidelines and transparency in revenue allocation, enabling a fair distribution of proceeds from oil and gas production in Oklahoma.