Cook Illinois Division Order

• Category: Oil Gas and Minerals - Division and Transfer Orders
• State: Multi-State
• County: Cook
• Control #: US-OG-068
• Format: Word; Rich Text

Description

This is the model form which many companies now use. Cook Illinois Division Order is a legal document that outlines the distribution of oil and gas revenue among multiple parties involved in the production process. It establishes the proportions in which the proceeds from the sale of oil and gas will be distributed between the mineral rights owners, leaseholders, working interest owners, and other parties. The Cook Illinois Division Order is crucial in ensuring fair and accurate allocation of funds from oil and gas production. It specifies the decimal interest or royalty interest of each party, which determines their share of the revenue generated from the sale of extracted minerals. The division order also serves as an agreement between the operator and the recipients, acknowledging the payment terms and conditions. It is important to note that there might be different types of Cook Illinois Division Orders based on specific arrangements or circumstances: 1. Conventional Division Order: This type of division order relates to the standard allocation of proceeds among parties involved in the extraction and production of oil and gas in Cook Illinois. It follows the customary industry practices and principles. 2. Unitized Division Order: In cases where multiple leases or interests are combined into a single unit, an unitized division order is created to ensure equitable distribution of revenue among all contributing parties. This order handles situations where land tracts are pooled together for more efficient extraction operations. 3. Overriding Royalty Interest Division Order: An overriding royalty interest (ORRIS) division order is designed to address the specific interests of parties that hold a royalty interest greater than the standard decided in the conventional division order. ORRIS owners receive a higher percentage of the revenue reflecting their superior royalty claim. 4. Net Profit Interest Division Order: This type of division order applies to parties holding net profit interest (NPI), which entitles them to a share of the generated profits. This is different from a standard royalty interest, as it accounts for expenses and deductions associated with the production process before calculating the net profit to be distributed. These various types of Cook Illinois Division Orders allow for flexibility in addressing specific circumstances, interests, or arrangements, ensuring fair and accurate distribution of revenue from oil and gas production.

Cook Illinois Division Order is a legal document that outlines the distribution of oil and gas revenue among multiple parties involved in the production process. It establishes the proportions in which the proceeds from the sale of oil and gas will be distributed between the mineral rights owners, leaseholders, working interest owners, and other parties. The Cook Illinois Division Order is crucial in ensuring fair and accurate allocation of funds from oil and gas production. It specifies the decimal interest or royalty interest of each party, which determines their share of the revenue generated from the sale of extracted minerals. The division order also serves as an agreement between the operator and the recipients, acknowledging the payment terms and conditions. It is important to note that there might be different types of Cook Illinois Division Orders based on specific arrangements or circumstances: 1. Conventional Division Order: This type of division order relates to the standard allocation of proceeds among parties involved in the extraction and production of oil and gas in Cook Illinois. It follows the customary industry practices and principles. 2. Unitized Division Order: In cases where multiple leases or interests are combined into a single unit, an unitized division order is created to ensure equitable distribution of revenue among all contributing parties. This order handles situations where land tracts are pooled together for more efficient extraction operations. 3. Overriding Royalty Interest Division Order: An overriding royalty interest (ORRIS) division order is designed to address the specific interests of parties that hold a royalty interest greater than the standard decided in the conventional division order. ORRIS owners receive a higher percentage of the revenue reflecting their superior royalty claim. 4. Net Profit Interest Division Order: This type of division order applies to parties holding net profit interest (NPI), which entitles them to a share of the generated profits. This is different from a standard royalty interest, as it accounts for expenses and deductions associated with the production process before calculating the net profit to be distributed. These various types of Cook Illinois Division Orders allow for flexibility in addressing specific circumstances, interests, or arrangements, ensuring fair and accurate distribution of revenue from oil and gas production.