Division Orders
What this document covers
The Division Orders form is a legal document that outlines the terms under which a seller agrees to transfer their interest in oil and gas from a well to a purchaser. This form is essential for clarifying the distribution of revenue between sellers and buyers, based on the sellerâs property interests. Unlike other legal forms, the Division Orders specifically manage the transactions related to oil and gas sales, ensuring that all parties involved understand their rights and obligations.
Key components of this form
- Seller and buyer property numbers for identification.
- Name and address of the gas or oil purchaser.
- Division Order ID for tracking transactions.
- Assessment of whether the seller's interest is in suspense.
- Current well status to indicate operational conditions.
- Details on distribution of runs and any held suspended runs.
Common use cases
This form should be used when a seller of oil and gas needs to establish clear terms for the sale and transfer of their interest. Typical scenarios include when entering into an agreement with a buyer or when clarifying payments from sales of oil and gas. It is crucial in situations where interests may be in suspense or when there are changes to the status of wells.
Intended users of this form
- Oil and gas producers who are selling their interests.
- Purchasers looking to formalize their agreements with sellers.
- Landowners involved in oil and gas transactions.
- Legal professionals assisting clients in oil and gas negotiations.
Instructions for completing this form
- Identify the parties involved by filling out the seller's and buyer's property numbers.
- Complete the purchaser's name and address and assign a Division Order ID.
- Indicate if the seller's interest is in suspense and provide details as necessary.
- Specify whether the seller is making distributions or holding any suspended runs.
- Enter important details about the current well status.
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 provide accurate property numbers.
- Not indicating if the seller's interest is in suspense.
- Leaving out the purchaser's information.
- Incorrectly filling out the current well status.
Why complete this form online
- Immediate access to downloadable legal forms.
- Customizable fields to match individual transaction needs.
- Guidance from licensed attorneys ensures compliance with legal standards.
- Convenience of completing and signing documents from home.
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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.
