Division Order

Oil and Gas Leasing Help
1

I received a Division Order that has what seems to be norma stuff like Lease no., Amount of Interest, but it also has the following statement:

The undersinged, me, hereby agrees to indemnify ... Oil Purchasing Co. its sucessors and assigns, against any and all claims or causes of action which may arise out of said payment. The undersigned agrees to pay upon demald all expenses (including but not limited to court costs and attorney fees) incurred by ...Oil Purchasing Co in the defense of any claim arising out of said payment.

Is this Normal?

They also have the following statement:

Pursuant to my signature below as an authorized officer, I warrant this property, in whole or in part, is not involved in any disput or litigation, and understand this written declaration is made under oath subect to the penalty or perjury.

Are these common to a Division Order?

Thanks,

Gene

2

Yes. All division orders have this, that way if someone comes up claiming rights of some kind, the operator or first payer can pass off the liability to the owners. Most also require you to submit a copy of your deed as well, so you can be at least listed in the county as the (a) owner of record.