Division Orders
About this form
The Division Order form is a legal document used to manage the distribution of proceeds from the sale of oil and gas. This form ensures that sellers and buyers have a clear understanding of the transactions related to gas and oil interests. Unlike other forms that may address general property sales, this form specifically focuses on the division of revenues between multiple parties involved in extraction operations.
Main sections of this form
- Seller and Buyer Property Numbers
- Name and address of the gas purchaser
- Name and address of the oil purchaser
- Division Order ID for both gas and oil purchasers
- Status of seller's interest in suspense
- Division Order Basis, including lease, tract, and unit information
- Current well status
Situations where this form applies
This form is used when a property owner or seller wishes to outline the terms of payment and distribution for oil and gas revenues. It is essential in scenarios where multiple parties are involved in the sale, especially to confirm that distributions align with each party's ownership interests. You should use this form when entering into contracts with purchasers or when there are changes in ownership that affect royalty payments.
Who this form is for
This form is intended for:
- Property owners with interests in oil and gas resources
- Companies or individuals purchasing gas or oil
- Attorneys and legal representatives handling transactions in oil and gas
Instructions for completing this form
- Identify and enter the seller and buyer property numbers at the top of the form.
- Fill in the name and address for both the gas and oil purchasers.
- Provide the Division Order ID for each purchaser.
- Indicate whether the seller's interest is in suspense and provide relevant details if applicable.
- Specify the division order basis including lease, tract, and unit information.
- Complete the current well status to ensure all parties are informed of operational conditions.
Is notarization required?
This form does not typically require notarization to be legally valid. However, some jurisdictions or document types may still require it. US Legal Forms provides secure online notarization powered by Notarize, available 24/7 for added convenience.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Failing to accurately enter the property numbers.
- Leaving out vital purchaser information such as name or address.
- Incorrectly marking the status of the sellerâs interest in suspense.
- Not specifying the correct division order basis.
Advantages of online completion
- Convenient access and instant download at your convenience.
- Editability allows customization to meet specific needs.
- Reliability of having forms drafted by licensed attorneys ensures compliance with legal standards.
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FAQ
A division order is a record of your interest in a specific well. It contains your decimal interest, interest type, well number and well name. Division orders are issued to all that own an interest in a specific well after that well has achieved first sales of either oil or gas.
A Division Order (DO's), also known as a Division of Interest (DOI), is the instrument which details the proportional ownership of produced minerals, including oil, liquids, natural gas, etc., in a well or unitized area of production.
For all three division symbols, we say divided by. The division in a is read from left to right: twelve divided by six. The division in b is read from top to bottom: twelve divided by six. The division in c is written with a division box. We read the number inside the box first: twelve divided by six.
Net revenue is the amount that is shared among the property owners. To determine net revenue interest, multiply the royalty interest by the owner's shared interest. For example, if you have a 5/16 royalty, your net royalty interest would be 25% multiplied by 5/16, which equals 7.8125% calculated to four decimal places.
A Division Order (DO's), also known as a Division of Interest (DOI), is the instrument which details the proportional ownership of produced minerals, including oil, liquids, natural gas, etc., in a well or unitized area of production.
Division is breaking a number up into an equal number of parts. Example: 20 divided by 4 = ? If you take 20 things and put them into four equal sized groups, there will be 5 things in each group.
We always follow division with multiplication, multiplying the divisor by the number we put at the top of our division problem. In this case, it would be 7 x 1, which is 7, so we would write 7 underneath the 11.
Your job as a Division Order Analyst is to determine each owner's share, and distribute checks accordingly. You may work for only one company, keeping detailed records about the people who own the company's equipment and resources.