Provisions Which May Be Added to a Division Or Transfer Order
What is this form?
The Provisions Which May Be Added to a Division or Transfer Order is a legal document that allows a disbursing company to make payments to agents or third parties in situations where payments may deviate from record ownership. This form is essential for protecting the company from claims arising from such payments, ensuring that all parties involved agree to the payment methods described within the document.
What’s included in this form
- Agent/Attorney-in-Fact designation for payment of proceeds.
- Indemnification clause protecting the disbursing company from claims.
- Provisions for payment methods before and after payout.
- Life estate acknowledgment for payments based on life tenants and remaindermen.
- Sliding scale payment instructions based on production volume.
Situations where this form applies
This form is typically used when a company needs to make payments that do not follow the usual record ownership. This can occur in various scenarios, such as when there is a dispute among owners, when an owner designates a third party to receive payments, or when production rights and interests change over time. It is crucial in ensuring that payments are made correctly while safeguarding the disbursing company against potential liability.
Who needs this form
This form is intended for:
- Disbursing companies managing payments for interests in oil and gas production.
- Agents or attorneys-in-fact authorized to receive payments on behalf of another.
- Property owners involved in a division or transfer of interest where payments are redirected.
- Parties involved in disputes regarding payment directions for shared interests.
Steps to complete this form
- Identify the disbursing company and the agent or attorney-in-fact.
- Fill in the names of the individuals or entities involved and their respective interests.
- Include relevant details about the payment methods before and after payout.
- Obtain necessary signatures from all parties to ensure agreement to the terms.
- Attach any required evidence for changes in ownership or payment directions.
Notarization requirements for this form
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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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 party signatures, which may invalidate the agreement.
- Not providing sufficient evidence for changes in ownership or payment instructions.
- Overlooking the indemnification clauses, which may leave the disbursing company exposed to claims.
- Using outdated versions of the form that do not comply with current laws.
Why complete this form online
- Convenience of accessing and completing the form from anywhere at any time.
- Editability allows users to customize the document to fit specific needs quickly.
- Reliable templates drafted by licensed attorneys ensure the legal validity of the form.
