A West Virginia Division Order is a legal document that outlines the ownership interest in a specific oil or gas well in the state of West Virginia. It helps determine the proportionate share of revenue and royalties that each owner is entitled to receive from the production of oil or gas on a particular property. The West Virginia Division Order serves as a crucial contract between the oil or gas operator and the various mineral interest owners. It provides detailed information about the well, including its location, production rights, and the working interest and royalty interest percentages assigned to each owner. This document ensures transparency and accountability in the distribution of profits from oil and gas production. Types of West Virginia Division Orders may include: 1. Standard West Virginia Division Order: This is the most common type of division order used in West Virginia. It contains the standard provisions and clauses that define the rights and obligations of both the operator and the mineral interest owners. 2. Non-Deduction West Virginia Division Order: This type of division order specifies that the royalty payment received by the mineral interest owners should not be subject to any post-production costs or deductions, ensuring the owners receive their full entitled share. 3. Royalty-Only West Virginia Division Order: In this case, the division order pertains only to the royalty interest owners who are entitled to a share of the sales proceeds. It excludes any working interest owners who bear the costs of drilling, operation, and maintenance expenses. 4. Modified West Virginia Division Order: This type of division order includes additional provisions or modifications tailored to specific circumstances or unique agreements between the operator and mineral interest owners. In conclusion, a West Virginia Division Order is a legally binding document that plays a vital role in determining ownership rights and revenue distribution among owners of oil or gas wells in West Virginia. Different types of division orders, such as standard, non-deduction, royalty-only, and modified, cater to varying scenarios and ensure fair allocation of profits to the concerned parties.
West Virginia Division Order
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How to fill out Division Order?
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A mineral lease is a contractual agreement between the owner of a mineral estate (known as the lessor), and another party such as an oil and gas company (the lessee). The lease gives an oil or gas company the right to explore for and develop the oil and gas deposits in the area described in the lease.
Mineral interests in WV are taxed the same as your home. You will pay 60% of the appraised value on the minerals at the levy rate for your county. The value of these minerals in based on WV Code procedures and is the same for all counties in WV. Minerals are taxed at a minimum value until production begins.
A Division order is an instrument that records an owner's interest in a specific well. It should include the name of the well, the well number, interest type, and your decimal interest.
A division order analyst works for a petroleum company and oversees company records. As a division order analyst, you establish, prepare, review, approve, and maintain documents regarding production and land ownership for royalty owners. You generally work as a part of the land department at an oil company.
The division order describes the minerals, it asks for information about yourself, and often asks you to agree to certain things related to the payment of royalties. But beware, in Oklahoma you are not required to sign and return a division order. In fact, you may be unnecessarily impairing or giving away your rights.
A Division order is an instrument that records an owner's interest in a specific well. It should include the name of the well, the well number, interest type, and your decimal interest.
The payor may not require a division order, however, that requires much more than is necessary for it to verify the interest you claim to be entitled to. You may insist that the payor submit a division order containing no more than is required by Texas law.
Cons of Selling Your Mineral Rights Loss of Potential Future Income: When you sell your mineral rights, you also give up any potential future income from those rights. This can be a significant loss if the mineral rights end up producing more than expected or if there are new discoveries in the future.