Virgin Islands 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 Virgin Islands Division Order is a legal document that defines the ownership rights and distribution of proceeds from the production of minerals in the Virgin Islands region. It is typically prepared and issued by an oil and gas exploration company to the owners of the land, referred to as working interest owners and royalty interest owners. The Virgin Islands Division Order includes essential information such as the name of the oil company, lease or well number, property description, and the legal description of the property being developed. It outlines the percentage of ownership held by each individual or entity and specifies the share of proceeds they are entitled to receive. The document also includes information about the production and payment cycle, including the date of first production, the frequency of payments, and the method of calculation used to determine the net revenue for distribution. It may include provisions for withholding taxes, deductibles, or other expenses related to the operation and maintenance of the oil or gas well. Different types of Virgin Islands Division Orders may exist depending on various factors such as the type of ownership interest held by the recipients or the specific conditions of the oil and gas lease. Some common types include: 1. Working Interest Division Order: This type is issued to owners who have a direct financial interest in the oil and gas well. They are responsible for bearing a portion of the exploration and production costs and are entitled to a share of the revenue generated. 2. Royalty Interest Division Order: This type is issued to owners who hold a royalty interest in the minerals produced from the well. They do not bear any exploration or production costs but are entitled to a specific percentage of the production revenue as a royalty payment. 3. Overriding Royalty Interest Division Order: This type is similar to a royalty interest but is usually given to a third party, such as a landowner or a party with a specific contractual agreement, granting them a share of the revenue without owning the minerals. 4. Non-Participating Royalty Interest Division Order: This type is issued to owners who have a royalty interest but do not have the right to lease their share of the minerals to an oil and gas company. They receive a share of the revenue from the production but have limited control over the development of the well. In conclusion, a Virgin Islands Division Order is a crucial legal document that outlines the ownership rights and distribution of proceeds regarding mineral production in the Virgin Islands region. It ensures transparency and fair compensation for the various stakeholders involved in oil and gas exploration and production activities.

A Virgin Islands Division Order is a legal document that defines the ownership rights and distribution of proceeds from the production of minerals in the Virgin Islands region. It is typically prepared and issued by an oil and gas exploration company to the owners of the land, referred to as working interest owners and royalty interest owners. The Virgin Islands Division Order includes essential information such as the name of the oil company, lease or well number, property description, and the legal description of the property being developed. It outlines the percentage of ownership held by each individual or entity and specifies the share of proceeds they are entitled to receive. The document also includes information about the production and payment cycle, including the date of first production, the frequency of payments, and the method of calculation used to determine the net revenue for distribution. It may include provisions for withholding taxes, deductibles, or other expenses related to the operation and maintenance of the oil or gas well. Different types of Virgin Islands Division Orders may exist depending on various factors such as the type of ownership interest held by the recipients or the specific conditions of the oil and gas lease. Some common types include: 1. Working Interest Division Order: This type is issued to owners who have a direct financial interest in the oil and gas well. They are responsible for bearing a portion of the exploration and production costs and are entitled to a share of the revenue generated. 2. Royalty Interest Division Order: This type is issued to owners who hold a royalty interest in the minerals produced from the well. They do not bear any exploration or production costs but are entitled to a specific percentage of the production revenue as a royalty payment. 3. Overriding Royalty Interest Division Order: This type is similar to a royalty interest but is usually given to a third party, such as a landowner or a party with a specific contractual agreement, granting them a share of the revenue without owning the minerals. 4. Non-Participating Royalty Interest Division Order: This type is issued to owners who have a royalty interest but do not have the right to lease their share of the minerals to an oil and gas company. They receive a share of the revenue from the production but have limited control over the development of the well. In conclusion, a Virgin Islands Division Order is a crucial legal document that outlines the ownership rights and distribution of proceeds regarding mineral production in the Virgin Islands region. It ensures transparency and fair compensation for the various stakeholders involved in oil and gas exploration and production activities.