Pennsylvania 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. A Pennsylvania Division Order is a legal document that outlines the distribution of oil or gas royalties among the various interest owners in a specific oil or gas well, lease, or unit located in the state of Pennsylvania. It serves as a contractual agreement between the operator or producer and the interest owners, ensuring proper accounting and payment of royalties transparently. Keywords: Pennsylvania, Division Order, oil, gas, royalties, interest owners, operator, producer, well, lease, unit, accounting, payment, transparent. There are different types of Pennsylvania Division Orders, including: 1. Individual Division Order: This type of Division Order is issued to an individual interest owner who has a specific fractional interest in the oil or gas well, lease, or unit. It specifies their share of production and the royalty payments they are entitled to receive. 2. Joint Venture Division Order: In the case where two or more interest owners form a joint venture to develop and produce oil or gas, a Joint Venture Division Order is issued to outline the distribution of royalties among the partners based on their agreed-upon ownership percentages. 3. Unitized Division Order: When multiple leases or wells are consolidated into a single unit for the purpose of efficient production, an Unitized Division Order is issued. It determines the allocation of royalties among the interest owners of the entire unit, considering factors such as their acreage, production contributions, and participation percentage. 4. Overriding Royalty Interest Division Order: An Overriding Royalty Interest (ORRIS) is a non-participating interest in the oil or gas production that is granted to a third party, usually in exchange for certain rights or services. An ORRIS Division Order specifies the percentage of production the ORRIS owner is entitled to receive. Pennsylvania Division Orders play a crucial role in ensuring fair distribution of royalties and establishing the legal rights and obligations of all parties involved in oil and gas operations. They provide clarity and transparency in the calculation and remittance of payments, benefiting both the operator and the interest owners.

A Pennsylvania Division Order is a legal document that outlines the distribution of oil or gas royalties among the various interest owners in a specific oil or gas well, lease, or unit located in the state of Pennsylvania. It serves as a contractual agreement between the operator or producer and the interest owners, ensuring proper accounting and payment of royalties transparently. Keywords: Pennsylvania, Division Order, oil, gas, royalties, interest owners, operator, producer, well, lease, unit, accounting, payment, transparent. There are different types of Pennsylvania Division Orders, including: 1. Individual Division Order: This type of Division Order is issued to an individual interest owner who has a specific fractional interest in the oil or gas well, lease, or unit. It specifies their share of production and the royalty payments they are entitled to receive. 2. Joint Venture Division Order: In the case where two or more interest owners form a joint venture to develop and produce oil or gas, a Joint Venture Division Order is issued to outline the distribution of royalties among the partners based on their agreed-upon ownership percentages. 3. Unitized Division Order: When multiple leases or wells are consolidated into a single unit for the purpose of efficient production, an Unitized Division Order is issued. It determines the allocation of royalties among the interest owners of the entire unit, considering factors such as their acreage, production contributions, and participation percentage. 4. Overriding Royalty Interest Division Order: An Overriding Royalty Interest (ORRIS) is a non-participating interest in the oil or gas production that is granted to a third party, usually in exchange for certain rights or services. An ORRIS Division Order specifies the percentage of production the ORRIS owner is entitled to receive. Pennsylvania Division Orders play a crucial role in ensuring fair distribution of royalties and establishing the legal rights and obligations of all parties involved in oil and gas operations. They provide clarity and transparency in the calculation and remittance of payments, benefiting both the operator and the interest owners.