Keywords: New York, Division Orders, types Detailed description: New York Division Orders, also known as division of interests orders, are legal documents that establish ownership and payout arrangements for mineral rights, royalties, and other interests in oil, gas, or mineral leases located in the state of New York. These orders are crucial in determining the distribution of proceeds from the production of minerals and ensuring fair compensation to all parties involved. There are several types of New York Division Orders, each serving a specific purpose: 1. Standard New York Division Order: This type of division order is the most common and outlines the proportional interest ownership of the various parties involved in an oil, gas, or mineral lease. It includes essential details such as the legal description of the property, the effective date of the order, and the terms of payment. 2. Non-Participating Royalty Interest (NPR) Division Order: An NPR division order is used when a specific party or entity possesses a royalty interest but does not have the right to participate in the operation or decision-making processes of the lease. This type of division order determines the entitlement of the NPR owner to their share of the proceeds. 3. Overriding Royalty Interest (ORRIS) Division Order: An ORRIS division order is similar to NPR division orders but differs in that it grants a percentage of the royalty interest based on production to a party or entity in addition to the working interest owners. ORRIS division orders outline the terms by which the overriding royalty interest is calculated and paid. 4. Unitized Division Order: In cases where multiple lease properties are combined into a unit or an agreement is made regarding the allocation of production, unitized division orders come into play. These division orders define the ownership interests and terms of payment for each party involved in the unitized lease. 5. Graduated Division Order: A graduated division order accounts for the changing ownership interests as parties' interests are reduced or eliminated over time as wells deplete. This type of division order ensures that each party's share of the proceeds corresponds to their diminishing interest. 6. Supplemental Division Order: A supplemental division order is issued to modify or amend an existing division order. It reflects any changes in ownership interests, payment terms, or other relevant information. New York Division Orders play a pivotal role in the extraction and distribution of oil, gas, and mineral resources in the state. By providing a clear structure for ownership interests and payment arrangements, these orders protect the rights of all parties involved and facilitate fair compensation for the production of valuable resources.
New York Division Orders
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