Division Order
Understanding this form
The Division Order is a legal document used in the oil and gas industry to outline the distribution of proceeds from oil production among interest owners. It specifies each owner's share of production and payment details, ensuring clarity between all parties involved. Unlike other related forms, the Division Order focuses specifically on the allocation of revenue for produced hydrocarbons based on ownership interests.
Key components of this form
- Name and address of the payor
- Property number and effective date
- Legal description of the property and interests owned
- Terms of sale detailing payment procedures
- Indemnity clauses to protect payor from liability
- Provisions for dispute withholding of funds
- Terms for termination and notices for changes in interest
Situations where this form applies
This Division Order should be used when an interest owner receives payment for their share of oil and related hydrocarbons produced from a specific property. It is essential during financial transactions between operators and owners to clearly establish how much each party is entitled to receive based on their ownership interest. Typical scenarios include the initiation of new oil production or changes in ownership among existing interest holders.
Who should use this form
- Property owners or interest holders in oil and gas production
- Operators handling the production and sale of oil
- Individuals or companies involved in joint ventures in oil fields
- Accountants or financial advisors managing oil revenue distribution
Steps to complete this form
- Identify the parties involved by entering the name and address of the payor.
- Specify the property number and effective date as outlined in the mineral rights documentation.
- Detail the legal description of the property and the ownership interests of all parties.
- Complete the payment terms concerning how distributions will be calculated and paid.
- Include any necessary clauses about indemnity and dispute resolutions.
- Sign the form to finalize the agreement and ensure all parties retain a copy.
Notarization requirements for this form
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.
Common mistakes
- Failing to include all necessary parties' signatures.
- Incorrectly calculating ownership interests.
- Not providing accurate property legal descriptions.
- Overlooking the notice provisions regarding changes in ownership.
Benefits of using this form online
- Easy access to a professionally drafted template that ensures compliance.
- Convenient download and editing options to tailor the form to individual needs.
- Rapid completion allows for quicker agreements and payments.
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FAQ
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.
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.
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.
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.
Your decimal interest is calculated based on your royalty interest in the tract or unit on which the well is drilled.Or, you might own a non-participating royalty equal to 1/16 of the royalty reserved in any lease of the lands in the unit (a fraction of the royalty).
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.
To divide cell A2 by 5: =A2/5. To divide cell A2 by cell B2: =A2/B2. To divide multiple cells successively, type cell references separated by the division symbol. For example, to divide the number in A2 by the number in B2, and then divide the result by the number in C2, use this formula: =A2/B2/C2.
What is division? Division is repeated subtraction. It is the process of dividing a number (dividend) with another number with the same or lesser value (divisor) to find the quotient and a remainder.If the quotient is later multiplied with the divisor, we get the dividend.
