Legal Dictionary of Pakistan

division order

Oil & gas. A sales contract for the purchase of oil or gas, directing the purchaser to pay for the value of the products in the proportions set out in the contract. 0 The purchaser usu. asks the lessee to provide complete abstracts of title, which the purchaser uses to obtain a title examination and a title opinion. The purchaser then prepares the division order, usu. requiring it to be executed by the operator, the royalty owners, and anyone else with an interest in production. Once the division order is executed and returned to the purchaser, payments begin for the products removed.