West Virginia Division Orders are legal documents that outline the distribution of oil and gas proceeds among mineral owners or royalty holders in West Virginia. These orders are crucial for ensuring fair and accurate remittance of royalty payments to the rights holders. A West Virginia Division Order typically includes the following key details: 1. Title Information: The order begins with the legal description of the oil and gas property, including the county, district, and well name/number. 2. Parties Involved: The order lists the names and addresses of all parties involved, such as the operator, leaseholders, mineral owners, and royalty holders. 3. Decimal Interest: Each owner's decimal interest is specified, representing their proportionate share of the oil and gas revenues generated from the well. This interest is determined based on factors like lease terms, size of ownership, and royalty rates. 4. Terms and Conditions: The order outlines specific terms and conditions related to royalty payments, including the payment frequency, calculation formula, and any deductions or expenses considered in the process. 5. Revenue Disbursement: It details the process of revenue distribution, specifying how payments will be made, whether through check, direct deposit, or other methods. It may also include instructions for any necessary documentation or action required for receiving payments. Different types of West Virginia Division Orders may include: 1. Initial Division Orders: These orders are issued when a new well is drilled or when an existing well undergoes a change in ownership. They establish the initial distribution rights and decimal interests of the mineral owners or royalty holders. 2. Modified Division Orders: These orders are issued when there is a change in the ownership or interest percentage of the oil and gas property. This can occur due to the sale or transfer of mineral rights, changes in lease terms, or the death of a royalty holder. 3. Amended Division Orders: These orders are issued when there are changes to the terms and conditions related to royalty payments or when updated information needs to be provided to the parties involved. West Virginia Division Orders play a critical role in ensuring transparency and accuracy in the distribution of oil and gas proceeds. By establishing clear guidelines and allocating fair shares to the rightful owners, these orders allow for efficient and compliant revenue disbursement in the state of West Virginia.
West Virginia Division Orders
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How to fill out West Virginia Division Orders?
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FAQ
The purpose of a division order is to protect the company paying the royalty (?payor?) from double liability. If you sign a division order and it turns out that you should have been paid a larger interest than shown on the division order, the company is protected as long as it paid ing to the division order.
Mineral interests in WV are taxed the same as your home. You will pay 60% of the appraised value on the minerals at the levy rate for your county. The value of these minerals in based on WV Code procedures and is the same for all counties in WV. Minerals are taxed at a minimum value until production begins.
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.
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 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 is a contract between the owner of a royalty or other interest in oil and gas (payee) and the company that will be paying for royalty and other production on its sale (payor).
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.
The division order describes the minerals, it asks for information about yourself, and often asks you to agree to certain things related to the payment of royalties. But beware, in Oklahoma you are not required to sign and return a division order. In fact, you may be unnecessarily impairing or giving away your rights.