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What is a Division Order Title Opinion and Why is it Important?
Definition & Meaning
A division order title opinion is a formal document typically prepared by an attorney. It outlines the names of individuals or entities that hold ownership rights in a producing oil or gas well, along with their respective decimal ownership interests. This opinion serves as a verification of ownership, ensuring that all parties involved in the production of oil or gas are accurately represented in terms of their share of revenue derived from the sale of these resources.
Table of content
Legal Use & context
Division order title opinions are primarily used in the oil and gas industry. They play a crucial role in legal practices related to property rights, contracts, and revenue distribution. Attorneys often prepare these opinions to clarify ownership interests before production begins, ensuring compliance with state laws and regulations. Users may find it beneficial to utilize legal templates from US Legal Forms to draft division orders and related documents, facilitating self-management of their legal needs.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: An attorney prepares a division order title opinion for a new oil well in Texas. The opinion lists three owners: Alice with a 25 percent interest, Bob with a 50 percent interest, and Carol with a 25 percent interest.
Example 2: A gas company requests a division order title opinion to ensure all ownership interests are correctly documented before commencing production. The attorney verifies the ownership through public records and confirms the decimal shares for each owner. (hypothetical example)
State-by-state differences
State
Key Differences
Texas
Division orders are often required to be filed with the state for revenue distribution.
Oklahoma
Specific forms must be used, and the state has unique regulations regarding ownership verification.
California
Additional environmental regulations may affect the preparation of division orders.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Division Order
A document detailing ownership shares in production revenue.
Focuses on revenue distribution rather than ownership verification.
Title Opinion
A legal opinion regarding the ownership of property.
More general and can apply to various types of property, not just oil and gas.
Common misunderstandings
What to do if this term applies to you
If you are involved in oil and gas production and need a division order title opinion, consider the following steps:
Consult with an attorney who specializes in oil and gas law to prepare the opinion accurately.
Gather all necessary documentation, including leases and deeds, to verify ownership interests.
Explore US Legal Forms for templates that can help you draft the required documents.
If the situation is complex or involves disputes, seek professional legal assistance.
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