Pennsylvania 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. Pennsylvania Oil and Gas Division Order is a legal document issued by the Pennsylvania Department of Environmental Protection (DEP) that outlines the distribution of royalties among the mineral rights owners, commonly referred to as "interest owners," in a specific oil and gas well or lease. This division order is an essential instrument that ensures fair compensation and proper allocation of proceeds from oil and gas production. The Pennsylvania Oil and Gas Division Order includes crucial details such as the names and addresses of the interest owners, their respective ownership percentages, the legal descriptions of the affected property, and the location of the well or lease. It also specifies the governing gas company's information and designates an individual to handle various administrative tasks related to royalty payments. There are different types of Pennsylvania Oil and Gas Division Orders, depending on the specific purpose they serve: 1. Initial Division Orders: These orders are issued at the beginning of oil and gas production operations, once the ownership interests have been determined and agreed upon. They establish the foundation for future royalty payments. 2. Amended Division Orders: These orders come into play when there are changes in the ownership interests due to transfers, acquisitions, or the death of an interest owner. They ensure accurate distribution of royalties by reflecting the updated ownership percentages. 3. Pooling Division Orders: These orders are issued when multiple tract owners agree to pool their mineral interests together for the purpose of drilling and extracting oil and gas resources. Pooling allows for more efficient operations and ensures that all parties involved receive fair compensation based on their contribution. Pennsylvania Oil and Gas Division Orders play a critical role in maintaining transparency and fairness in the oil and gas industry. They serve as binding contracts between the gas company and the interest owners, ensuring proper distribution of royalties and avoiding disputes. It is important for both parties to carefully review and understand the terms and provisions outlined in these division orders to protect their rights and interests in oil and gas production.

Pennsylvania Oil and Gas Division Order is a legal document issued by the Pennsylvania Department of Environmental Protection (DEP) that outlines the distribution of royalties among the mineral rights owners, commonly referred to as "interest owners," in a specific oil and gas well or lease. This division order is an essential instrument that ensures fair compensation and proper allocation of proceeds from oil and gas production. The Pennsylvania Oil and Gas Division Order includes crucial details such as the names and addresses of the interest owners, their respective ownership percentages, the legal descriptions of the affected property, and the location of the well or lease. It also specifies the governing gas company's information and designates an individual to handle various administrative tasks related to royalty payments. There are different types of Pennsylvania Oil and Gas Division Orders, depending on the specific purpose they serve: 1. Initial Division Orders: These orders are issued at the beginning of oil and gas production operations, once the ownership interests have been determined and agreed upon. They establish the foundation for future royalty payments. 2. Amended Division Orders: These orders come into play when there are changes in the ownership interests due to transfers, acquisitions, or the death of an interest owner. They ensure accurate distribution of royalties by reflecting the updated ownership percentages. 3. Pooling Division Orders: These orders are issued when multiple tract owners agree to pool their mineral interests together for the purpose of drilling and extracting oil and gas resources. Pooling allows for more efficient operations and ensures that all parties involved receive fair compensation based on their contribution. Pennsylvania Oil and Gas Division Orders play a critical role in maintaining transparency and fairness in the oil and gas industry. They serve as binding contracts between the gas company and the interest owners, ensuring proper distribution of royalties and avoiding disputes. It is important for both parties to carefully review and understand the terms and provisions outlined in these division orders to protect their rights and interests in oil and gas production.