Fairfax Virginia Division Order

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

Description

This is the model form which many companies now use. Fairfax Virginia Division Order is a legal document used in the oil and gas industry to establish the ownership and distribution of proceeds from the production of resources in Fairfax, Virginia. It serves as a binding agreement between the operator of a well and the royalty interest owners, specifying the quantities and proportions in which proceeds will be divided among the parties involved. The primary purpose of a Fairfax Virginia Division Order is to verify the ownership interests and ensure accurate distribution of revenue. It typically includes essential information such as the well name, operator's contact details, legal description of the property, and the names and addresses of royalty interest owners. The different types of Fairfax Virginia Division Order may include: 1. Mineral Interest Division Order: This type establishes the division and distribution of revenue among mineral interest owners based on their respective interest percentages. 2. Working Interest Division Order: A working interest owner is usually an operator or investor who shares in the costs and revenues from the well. This division order outlines the distribution of proceeds among the working interest owners according to their specified working interest percentages. 3. Overriding Royalty Interest Division Order: An overriding royalty interest owner typically does not contribute to the drilling and operating costs but has the right to receive a portion of the revenue generated from the production. This division order details the allocation of proceeds among overriding royalty interest holders. 4. Non-Participating Royalty Interest Division Order: In cases where a royalty interest owner is not participating in the oil and gas lease, a non-participating royalty interest division order determines the share of revenue they will receive without actively engaging in the operations. The Fairfax Virginia Division Order serves as a crucial document in ensuring fair and accurate distribution of revenue from oil and gas production. It plays a vital role in minimizing disputes and protecting the rights and interests of all parties involved in the extraction process.

Fairfax Virginia Division Order is a legal document used in the oil and gas industry to establish the ownership and distribution of proceeds from the production of resources in Fairfax, Virginia. It serves as a binding agreement between the operator of a well and the royalty interest owners, specifying the quantities and proportions in which proceeds will be divided among the parties involved. The primary purpose of a Fairfax Virginia Division Order is to verify the ownership interests and ensure accurate distribution of revenue. It typically includes essential information such as the well name, operator's contact details, legal description of the property, and the names and addresses of royalty interest owners. The different types of Fairfax Virginia Division Order may include: 1. Mineral Interest Division Order: This type establishes the division and distribution of revenue among mineral interest owners based on their respective interest percentages. 2. Working Interest Division Order: A working interest owner is usually an operator or investor who shares in the costs and revenues from the well. This division order outlines the distribution of proceeds among the working interest owners according to their specified working interest percentages. 3. Overriding Royalty Interest Division Order: An overriding royalty interest owner typically does not contribute to the drilling and operating costs but has the right to receive a portion of the revenue generated from the production. This division order details the allocation of proceeds among overriding royalty interest holders. 4. Non-Participating Royalty Interest Division Order: In cases where a royalty interest owner is not participating in the oil and gas lease, a non-participating royalty interest division order determines the share of revenue they will receive without actively engaging in the operations. The Fairfax Virginia Division Order serves as a crucial document in ensuring fair and accurate distribution of revenue from oil and gas production. It plays a vital role in minimizing disputes and protecting the rights and interests of all parties involved in the extraction process.