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.
Virgin Islands Letter in Lieu of Division and Transfer Orders
State:
Multi-State
Control #:
US-OG-322
Format:
Word;
Rich Text
Instant download
Description
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Total operated basis: The total reserves or production associated with the wells operated by an individual operator. This is also commonly known as the "gross operated" or "8/8ths" basis.
Letters in Lieu of Transfer Orders (US) A letter sent to a buyer of oil and gas when a producing oil and gas property is sold. It directs the addressee to make the payments for the production directly to the new owner of the property. This letter is an alternative to traditional transfer orders.
A landowner can also insert a clause in the lease to take royalty either ?in kind? or ?in value.? Taking royalty ?in kind? means that the Lessor can take physical possession of the oil, gas or liquids once they leave the ground, and he may market the production himself.
A transfer order is a document used for executing the movement of goods from one warehouse location to the other or the goods movement between a storage unit to another within the warehouse. The transfer order occurs for the purpose of warehouse management or order processing.
To be in lieu of something is to replace it or substitute for it. A restaurant that's run out of clams might serve French onion soup in lieu of chowder.