Harris Texas Division Order

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

Description

This is the model form which many companies now use. Harris Texas Division Order is a legal document that outlines the distribution and allocation of revenues derived from the production of oil, gas, or minerals in Harris County, Texas. This document is typically executed between the operator or producer of the minerals and the interested parties, such as landowners or royalty owners. The Harris Texas Division Order serves as an agreement that specifies crucial details, including the legal description of the property, the interest percentage or decimal interest owned by each party, and the calculations for revenue distribution. It ensures that the revenue paid to the proper interest holders is accurate and in accordance with their ownership percentages. There are different types of Harris Texas Division Order, each catering to specific scenarios or requirements. These include: 1. Royalty Division Order: This type of division order is issued to individuals or entities entitled to a share of production revenue based on their mineral rights ownership or contractual agreements. Royalty owners typically receive a predetermined percentage of revenue from production. 2. Overriding Royalty Interest (ORRIS) Division Order: An ORRIS is a percentage of the revenue that is carved out of the working interest (the interest owned by oil and gas operators) and granted to a third party, often by the lease agreement. The ORRIS division order specifies the terms and conditions under which the overriding royalty interest is to be paid. 3. Working Interest Division Order: In cases where the operator of the property is also an interest holder, a working interest division order is used. This type of order delineates the proportion of revenue allocation among the working interest owners, typically based on their percentage of ownership. 4. Joint Operating Agreement (JOB): Though not strictly a division order, a JOB is a contractual agreement between two or more parties outlining the terms and conditions related to the exploration, development, and production activities of a specific property. It establishes the working relationship, revenue sharing, and responsibilities of the parties involved. In conclusion, the Harris Texas Division Order is a critical legal document that ensures fair and accurate distribution of production revenues to interest holders in Harris County, Texas. Whether it be for royalty owners, overriding royalty interest holders, or working interest owners, the division order plays a vital role in maintaining transparency and facilitating smooth revenue sharing in the oil, gas, and mineral industry.

Harris Texas Division Order is a legal document that outlines the distribution and allocation of revenues derived from the production of oil, gas, or minerals in Harris County, Texas. This document is typically executed between the operator or producer of the minerals and the interested parties, such as landowners or royalty owners. The Harris Texas Division Order serves as an agreement that specifies crucial details, including the legal description of the property, the interest percentage or decimal interest owned by each party, and the calculations for revenue distribution. It ensures that the revenue paid to the proper interest holders is accurate and in accordance with their ownership percentages. There are different types of Harris Texas Division Order, each catering to specific scenarios or requirements. These include: 1. Royalty Division Order: This type of division order is issued to individuals or entities entitled to a share of production revenue based on their mineral rights ownership or contractual agreements. Royalty owners typically receive a predetermined percentage of revenue from production. 2. Overriding Royalty Interest (ORRIS) Division Order: An ORRIS is a percentage of the revenue that is carved out of the working interest (the interest owned by oil and gas operators) and granted to a third party, often by the lease agreement. The ORRIS division order specifies the terms and conditions under which the overriding royalty interest is to be paid. 3. Working Interest Division Order: In cases where the operator of the property is also an interest holder, a working interest division order is used. This type of order delineates the proportion of revenue allocation among the working interest owners, typically based on their percentage of ownership. 4. Joint Operating Agreement (JOB): Though not strictly a division order, a JOB is a contractual agreement between two or more parties outlining the terms and conditions related to the exploration, development, and production activities of a specific property. It establishes the working relationship, revenue sharing, and responsibilities of the parties involved. In conclusion, the Harris Texas Division Order is a critical legal document that ensures fair and accurate distribution of production revenues to interest holders in Harris County, Texas. Whether it be for royalty owners, overriding royalty interest holders, or working interest owners, the division order plays a vital role in maintaining transparency and facilitating smooth revenue sharing in the oil, gas, and mineral industry.