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Change Of Address Identity Verification Internal Controls Report: What You Should Know

Division Orders Under the National Oil and Gas Leasing Act The Division Order is a written lease with the consent of the owner. It provides for the allocation of certain revenues from mineral estates to oil and gas production. Division Orders Have Some Consequences It is unclear from the documents how it is that the Division Orders affect the owner's interest in oil and gas produced from these properties. It is not possible to know what happens when Division Orders are challenged in court. It is not clear from these documents who ultimately makes the decision as to the allocation of revenues between oil and gas produced and produced oil and gas sales and whether this is the same person who approved the division order. The Division Orders are set out in statutes which, in theory, have the effect of the constitution. However, the statutory regime is generally regarded as being quite effective and not to be trifled with by the oil and gas industry. Division Orders That Give Oil and Gas Companies a Legitimate Interest in the Land A Division Order that is based upon a valid concession, or concession lease, from the US Government gives oil and gas companies a legitimate interest in the mineral estate (oil and gas). “Legitimate Interest” is defined in section 8(c) of the National Oil and Gas Leasing Act and section 20(d) of the Mineral Leasing Act: “[A] legitimate interest is defined as (or as included in the Mineral Leasing Act): (1) an interest in the mineral estate in common with any person which the Minister determines, on the basis of any information made available to him by the person responsible for the administration of the Act; or (2) an interest in the mineral estate which, if vested on its own account, would be reasonable, having regard to all the circumstances of ownership and use, and given to all the relevant factors that the Minister determines, on the basis of information made available to him by the owners or operators of the land or land that is being leased.” The Division orders may be challenged and not only to the Minister of Natural Resources. The Division Orders that give oil and gas companies a legitimate interest in the oil and gas on lease from the U.S. Government give them certain rights and benefits. The Division Orders do a deal with property and profits — the Division Orders are enforceable contracts between the owner of the land and the companies drilling on her land.

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