Cook Illinois Oil and Gas Division Order

• Category: Oil Gas and Minerals - Division and Transfer Orders
• State: Multi-State
• County: Cook
• Control #: US-OG-323
• Format: Word; Rich Text

Description

This form is used to determine revenue payments and is issued to interest owners for a signature. The form includes the name of the interest owner, the interest for each interest owner, a legal description of the property, and the operator's name. Cook Illinois Oil and Gas Division Order is a legal document that governs the distribution of oil and gas production revenues among various parties involved in the extraction process. It outlines the rights and obligations of the mineral rights owners, working interest owners, and royalty interest owners in a particular oil and gas lease or well. The Cook Illinois Oil and Gas Division Order ensures a fair and proper allocation of proceeds from the production of oil and gas resources. It specifies the percentage or decimal interest of each party entitled to receive a share of the revenue generated. This order is crucial to maintain transparency and avoid any disputes over the distribution of profits from oil and gas operations. This division order includes essential information such as the legal description of the lease or well, the leaseholder's name, the landowner's name, the mineral interest owner's name, and their respective ownership interests. It also includes the unit or lease terms, production payment terms, and any applicable deductions or expenses to be subtracted from the gross revenue. There are different types of Cook Illinois Oil and Gas Division Orders, depending on the nature of the oil and gas operation. Some common types include: 1. Initial Division Order: This type of division order is drafted when an oil and gas well or lease is initially developed or acquired. It establishes the ownership interests and revenue distribution percentages from the beginning of production. 2. Amended Division Order: An amended division order is issued when there are changes in the ownership structure or if there is a modification to the initial division order. This could occur due to the sale or transfer of ownership interests, inheritance, or changes in operating agreements. 3. Supplemental Division Order: A supplemental division order is prepared when there is a change in an existing division order but does not necessitate a complete amendment. It may be related to the addition of new working interest owners or modifications in royalty or overriding royalty interests. Overall, Cook Illinois Oil and Gas Division Orders play a critical role in organizing the distribution of oil and gas revenues fairly and efficiently. It ensures that all parties involved receive their rightful share according to their ownership interests, thus facilitating a smooth and transparent process in the oil and gas industry.

Cook Illinois Oil and Gas Division Order is a legal document that governs the distribution of oil and gas production revenues among various parties involved in the extraction process. It outlines the rights and obligations of the mineral rights owners, working interest owners, and royalty interest owners in a particular oil and gas lease or well. The Cook Illinois Oil and Gas Division Order ensures a fair and proper allocation of proceeds from the production of oil and gas resources. It specifies the percentage or decimal interest of each party entitled to receive a share of the revenue generated. This order is crucial to maintain transparency and avoid any disputes over the distribution of profits from oil and gas operations. This division order includes essential information such as the legal description of the lease or well, the leaseholder's name, the landowner's name, the mineral interest owner's name, and their respective ownership interests. It also includes the unit or lease terms, production payment terms, and any applicable deductions or expenses to be subtracted from the gross revenue. There are different types of Cook Illinois Oil and Gas Division Orders, depending on the nature of the oil and gas operation. Some common types include: 1. Initial Division Order: This type of division order is drafted when an oil and gas well or lease is initially developed or acquired. It establishes the ownership interests and revenue distribution percentages from the beginning of production. 2. Amended Division Order: An amended division order is issued when there are changes in the ownership structure or if there is a modification to the initial division order. This could occur due to the sale or transfer of ownership interests, inheritance, or changes in operating agreements. 3. Supplemental Division Order: A supplemental division order is prepared when there is a change in an existing division order but does not necessitate a complete amendment. It may be related to the addition of new working interest owners or modifications in royalty or overriding royalty interests. Overall, Cook Illinois Oil and Gas Division Orders play a critical role in organizing the distribution of oil and gas revenues fairly and efficiently. It ensures that all parties involved receive their rightful share according to their ownership interests, thus facilitating a smooth and transparent process in the oil and gas industry.