This form is a letter used in Lieu of Division and Transfer Orders for the purposes of recognizing the ownership of Buyer of the interests in Leases assigned it by Seller, and as notice to begin accounting, to Buyer, for the identified interests in Leases assigned to it, as described in the Assignment.
The Oklahoma Letter in Lieu of Division and Transfer Orders is a legal document issued by the Oklahoma Corporation Commission (OCC) that allows for the transfer of ownership, division, or consolidation of oil and gas leasehold interests without the need for a formal division order. This letter serves as an alternative to the traditional division order process and provides a way for operators to manage changes in ownership and corporate structure efficiently. The Oklahoma Letter in Lieu of Division and Transfer Orders simplifies the division and transfer process by allowing operators to submit a written request to the OCC. This request must contain detailed information about the current and desired ownership structure, including the names and addresses of all parties involved. The OCC then reviews the request and, if approved, issues the letter, which serves as official documentation of the transfer or division of leasehold interests. There are several types of Oklahoma Letters in Lieu of Division and Transfer Orders, each catering to different scenarios and requirements: 1. Transfer Order: This type of letter is used when there is a transfer of ownership from one party to another. It is commonly utilized during the sale, purchase, or assignment of leasehold interests. 2. Division Order: A division order letter is employed when there is a need to divide ownership interests among multiple parties. This occurs when a leasehold interest is divided into fractional interests, typically due to inheritance, partnership agreements, or joint ventures. 3. Consolidation Order: In cases where multiple leasehold interests are consolidated into a single entity or individual, a consolidation order is requested. This type of letter streamlines the process of combining leasehold interests. The Oklahoma Letter in Lieu of Division and Transfer Orders plays a crucial role in facilitating efficient modifications of leasehold interests in the oil and gas industry. By streamlining the process, operators can navigate changes in ownership or corporate structure with ease while adhering to the guidelines established by the OCC.
