Texas 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 Texas Oil and Gas Division Order is a legal document that outlines the ownership and distribution of oil and gas proceeds within the state of Texas. It serves as a contractual agreement between the operator of a well and the mineral interest owners, establishing the terms and conditions under which the produced oil and gas will be distributed and how royalties will be paid. The Division Order is crucial in the oil and gas industry as it helps prevent disputes and ensures a fair distribution of revenues. It includes vital information such as the property description, well information, leasehold interests, fractional interest calculations, and an exhibit detailing the ownership interests. There are different types of Texas Oil and Gas Division Orders, each designed to address specific circumstances: 1. Standard Division Order: This is used when the ownership interests remain constant and are not subject to any changes or disputes. 2. Curative Division Order: This type is utilized when there is a defect in the title chain, known as a "cloud on title," and needs to be corrected before distributing revenue. 3. Probate Division Order: This is required when the ownership interests are being transferred due to the death of a mineral interest owner. It involves probating the deceased owner's estate and establishing a clear chain of title. 4. Warship Division Order: When the ownership interests are unclear due to the absence of a will or an incomplete chain of title, a warship division order is used to determine the rightful heirs and their corresponding interests. 5. Pooling Division Order: Used to distribute proceeds from a jointly operated oil or gas well where multiple leases are unitized into a single production unit. It is crucial for operators and mineral interest owners to carefully review the Texas Oil and Gas Division Order to ensure accuracy and fairness in the distribution of oil and gas revenues. Compliance with the division order is mandatory, providing a legal framework that protects the rights and interests of all parties involved.

The Texas Oil and Gas Division Order is a legal document that outlines the ownership and distribution of oil and gas proceeds within the state of Texas. It serves as a contractual agreement between the operator of a well and the mineral interest owners, establishing the terms and conditions under which the produced oil and gas will be distributed and how royalties will be paid. The Division Order is crucial in the oil and gas industry as it helps prevent disputes and ensures a fair distribution of revenues. It includes vital information such as the property description, well information, leasehold interests, fractional interest calculations, and an exhibit detailing the ownership interests. There are different types of Texas Oil and Gas Division Orders, each designed to address specific circumstances: 1. Standard Division Order: This is used when the ownership interests remain constant and are not subject to any changes or disputes. 2. Curative Division Order: This type is utilized when there is a defect in the title chain, known as a "cloud on title," and needs to be corrected before distributing revenue. 3. Probate Division Order: This is required when the ownership interests are being transferred due to the death of a mineral interest owner. It involves probating the deceased owner's estate and establishing a clear chain of title. 4. Warship Division Order: When the ownership interests are unclear due to the absence of a will or an incomplete chain of title, a warship division order is used to determine the rightful heirs and their corresponding interests. 5. Pooling Division Order: Used to distribute proceeds from a jointly operated oil or gas well where multiple leases are unitized into a single production unit. It is crucial for operators and mineral interest owners to carefully review the Texas Oil and Gas Division Order to ensure accuracy and fairness in the distribution of oil and gas revenues. Compliance with the division order is mandatory, providing a legal framework that protects the rights and interests of all parties involved.