Have seen a couple of ways the Effective Date is being written on Division Orders. One has "Date of First Production" another has "First Sales". Is this something that can be changed? Is there something else I should change it to say?
Some oil and gas leases require that you be paid on production, rather than sales. For example, some leases will require that you are paid on all gas produced and saved. This would include lease use gas and not subject to sale.
The "Date of first production" is the most conservative and inclusive language.
Best,
Buddy Cotten
1 Like