Houston Texas Division Order

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

Description

This is the model form which many companies now use. A division order in Houston, Texas is a legal document that outlines the ownership interests and distribution of proceeds from oil and gas production in a particular property or tract of land. It serves as an agreement between the operator of the oil or gas well and the various owners of mineral rights or royalties on that property. The Houston Texas Division Order plays a crucial role in the oil and gas industry, ensuring fair distribution of revenue to the rightful owners and providing an organized framework for accounting and reporting purposes. It contains vital information such as the owner's name, address, decimal interest, and payment details, serving as an official record of ownership and facilitating accurate revenue distribution. Different types of Houston Texas Division Orders may exist based on the nature of ownership. Some common variations include: 1. Mineral Owner Division Order: This type of division order is utilized when the owner of the mineral rights enters into an agreement with the operator to receive a share of the proceeds generated from the production. 2. Royalty Owner Division Order: Royalty owners are individuals or entities who have the right to receive a portion of the revenue generated from the production, typically as a percentage of the total production. The royalty owner division order outlines the terms and conditions of this arrangement. 3. Working Interest Division Order: Working interest owners actively participate in the exploration, development, and operation of the oil and gas well. In this type of division order, the owners' interests and responsibilities are clearly defined, along with the distribution of costs and revenue. 4. Overriding Royalty Interest (ORRIS) Division Order: An overriding royalty interest is a share of the production revenue granted to a person or entity other than the working interest owner. The ORRIS division order outlines the terms and conditions related to this interest. 5. Nonparticipating Royalty Interest (NPR) Division Order: NPR owners hold a share of the production revenue, but they do not have the right to participate in the operation or decision-making process. The NPR division order specifies the terms and conditions regarding the distribution of revenue to these owners. In the Houston Texas oil and gas industry, each division order type addresses specific ownership scenarios, ensuring accurate documentation and fair distribution of revenue among different parties involved.

A division order in Houston, Texas is a legal document that outlines the ownership interests and distribution of proceeds from oil and gas production in a particular property or tract of land. It serves as an agreement between the operator of the oil or gas well and the various owners of mineral rights or royalties on that property. The Houston Texas Division Order plays a crucial role in the oil and gas industry, ensuring fair distribution of revenue to the rightful owners and providing an organized framework for accounting and reporting purposes. It contains vital information such as the owner's name, address, decimal interest, and payment details, serving as an official record of ownership and facilitating accurate revenue distribution. Different types of Houston Texas Division Orders may exist based on the nature of ownership. Some common variations include: 1. Mineral Owner Division Order: This type of division order is utilized when the owner of the mineral rights enters into an agreement with the operator to receive a share of the proceeds generated from the production. 2. Royalty Owner Division Order: Royalty owners are individuals or entities who have the right to receive a portion of the revenue generated from the production, typically as a percentage of the total production. The royalty owner division order outlines the terms and conditions of this arrangement. 3. Working Interest Division Order: Working interest owners actively participate in the exploration, development, and operation of the oil and gas well. In this type of division order, the owners' interests and responsibilities are clearly defined, along with the distribution of costs and revenue. 4. Overriding Royalty Interest (ORRIS) Division Order: An overriding royalty interest is a share of the production revenue granted to a person or entity other than the working interest owner. The ORRIS division order outlines the terms and conditions related to this interest. 5. Nonparticipating Royalty Interest (NPR) Division Order: NPR owners hold a share of the production revenue, but they do not have the right to participate in the operation or decision-making process. The NPR division order specifies the terms and conditions regarding the distribution of revenue to these owners. In the Houston Texas oil and gas industry, each division order type addresses specific ownership scenarios, ensuring accurate documentation and fair distribution of revenue among different parties involved.