The Virgin Islands Oil and Gas Division Order is a crucial legal document that outlines and regulates the production and distribution of oil and gas resources in the Virgin Islands. This detailed description aims to provide a comprehensive overview of the purpose, importance, and various types of Division Orders within the Virgin Islands' oil and gas industry. Relevant keywords include Virgin Islands, oil and gas, resource management, production, distribution, legal document, regulation, Division Orders. The Virgin Islands Oil and Gas Division Order holds immense significance in ensuring the fair and efficient management of oil and gas extraction activities in the Virgin Islands. It serves as a legally binding agreement between oil and gas operators and royalty owners, providing a framework to accurately allocate and distribute financial interests associated with oil and gas production. The Division Order primarily identifies the various parties involved in the oil and gas project, including but not limited to the operator, working interest owners, royalty owners, and overriding royalty owners. It specifies the respective ownership percentages or decimal interests held by each party, which are crucial for determining the amount of oil and gas revenues received by each entity. Additionally, the Division Order contains essential details such as the legal description of the leased property or drilling unit, the specific well or unit designation, lease numbers, and any associated acreage. These details help ensure accurate accounting and proper distribution of royalties and revenues among the involved parties. Furthermore, the Division Order may also establish the method and frequency of royalty payments, including important provisions like royalty decimal interest, set-off rights, lease deductions, and payment terms. It serves as a critical tool in safeguarding the rights and interests of both the operators and the royalty owners, facilitating transparent and fair transactions. Different types of Division Orders exist based on specific oil and gas projects, lease agreements, or drilling units within the Virgin Islands. Some common types include Division Orders for onshore oil wells, offshore oil wells, natural gas wells, and offshore gas wells. Each type may have slight variations in the provisions and details based on the nature of the project, production methods, and relevant regulations. In conclusion, the Virgin Islands Oil and Gas Division Order is an essential legal document that regulates the production and distribution of oil and gas resources in the Virgin Islands. It ensures accurate allocation of financial interests, transparent royalty payments, and fair treatment of all parties involved. Properly executed Division Orders serve as the foundation for efficient resource management and contribute to the sustainable development of the oil and gas industry in the Virgin Islands.
Virgin Islands Oil and Gas Division Order
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How to fill out Oil And Gas Division Order?
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FAQ
Take, for example, a landowner who has 300 acres in a 500-acre production unit while signing an oil and gas lease of 15% royalty. Their decimal interest is calculated as follows: (300/500) × 0.15 equals 0.09, which represents their decimal interest.
?To pay Lessor for gas (including casinghead gas) and all other substance covered hereby, a royalty of 3/16 of the proceeds realized by Lessee from the sale thereof.? This simply means the operator will pay a royalty of 3/16 of revenue generated from production on the property.
To put it another way the formula is: lessor's acres in unit ÷ total number of acres in unit × lessor's ownership interest × lessor's royalty percentage = lessor's decimal interest.
If there is more than one mineral owner, multiply the net revenue by the fractional interest of each owner to determine their respective royalty interest.
A Division order is an instrument that records an owner's interest in a specific well. It should include the name of the well, the well number, interest type, and your decimal interest.
You may have noticed on your check stubs an ?owner interest? or ?net revenue interest? or a ?decimal interest?. The operator will then multiply your interest by the quantity of oil and gas produced and the current price to determine your oil and gas royalty payments.
Maintain documentation of outstanding open purchase orders which includes remaining balances, conversations and program identification. Work involves Analysis of Outstanding Purchase Order Report on a continuous basis to ensure prompt vendor payment.
A Division order is an instrument that records an owner's interest in a specific well. It should include the name of the well, the well number, interest type, and your decimal interest.
A division order analyst works for a petroleum company and oversees company records. As a division order analyst, you establish, prepare, review, approve, and maintain documents regarding production and land ownership for royalty owners. You generally work as a part of the land department at an oil company.
A division order is a contract between you and the operator (an oil and gas company). Typically, receiving a division order means that the operator is about to drill, or that the operator has already drilled a well and your minerals are producing.