Division Orders
What this document covers
A Division Order is a legally binding document that establishes the terms under which a payor distributes funds from the production of oil and gas. This form includes important provisions that clarify ownership rights and payment instructions among parties involved in oil and gas leases. Unlike standard lease forms, a Division Order details the specific interests of individual owners, ensuring all involved parties are aware of their rights and responsibilities in the transaction.
Key parts of this document
- Payor name and address to specify who will make payments.
- Effective date and property details including name and number.
- Owner details, including names, addresses, and decimal interests.
- Certification of ownership indicating the undersignedâs claims to production proceeds.
- Clauses detailing notice of ownership changes and payment procedures.
When to use this document
This Division Order should be used when entering into a lease transaction for oil or gas, particularly when you wish to clarify specific arrangements or limitations regarding payment distribution among owners. It's necessary in situations where clear definitions of ownership and payment rights need to be documented to prevent disputes among parties.
Intended users of this form
- Landowners or lessors involved in oil and gas lease transactions.
- Lessee companies responsible for oil or gas extraction operations.
- Royalty owners looking to secure their payment rights.
- Professionals managing oil and gas interests who need clear documentation.
Completing this form step by step
- Identify the payor by entering their name and address.
- Fill in dates, property details, and relevant production descriptions.
- List the owner's name and their corresponding decimal interest in the production.
- Sign and date the form, ensuring all owners involved have provided their signatures.
- Provide necessary identification numbers and contact information for each owner.
Notarization guidance
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.
Avoid these common issues
- Failing to accurately describe the property or decimal interests.
- Not updating the payor about changes in ownership promptly.
- Missing signatures from all owners involved in the transaction.
- Neglecting to check whether notarization is required for the Division Order in certain jurisdictions.
Benefits of using this form online
- Instant access to a variety of reliable legal forms without the need for in-person visits.
- Edit and customize the forms to fit unique circumstances smoothly.
- Reduced time spent on legal documentation, allowing for quicker implementation of transactions.
Legal use & context
- The Division Order is a binding document that outlines the distribution of oil and gas proceeds among owners.
- It helps protect owners' rights and ensures clarity regarding interests in production.
- Understanding the terms can prevent disputes and facilitate smooth transactions.
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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.
