Montana § 82-10-110 Division Order -- Definition -- Effect

Montana Statutes

§ 82-10-110 — Division Order -- Definition -- Effect

Montana § 82-10-110

Title 82MINERALS, OIL, AND GAS

Ch. 10OIL AND GAS -- GENERAL PROVISIONS

Part 1Royalty Interests

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Bluebook

Mont. Code Ann. § 82-10-110 (2026).

Text

82-10-110 . Division order -- definition -- effect.

(1)As used in this section, the term "division order" is limited to mean an instrument executed by the lessor of an oil or gas lease to authorize the sale of and direct the distribution of proceeds from the sale of oil, gas, casinghead gas, or other related hydrocarbons.

(2)A division order may not alter or amend the terms of the underlying oil or gas lease. A division order does not relieve a lessee of any liabilities or obligations under the terms of the underlying oil or gas lease.

(3)A division order must be in writing and:

(a)must warrant the division of interest;

(b)must contain the name, address, and tax identification number of each interest owner to whom disbursements are made by the holder of the proceeds from the sale of o

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82-10-110 . Division order -- definition -- effect. (1) As used in this section, the term "division order" is limited to mean an instrument executed by the lessor of an oil or gas lease to authorize the sale of and direct the distribution of proceeds from the sale of oil, gas, casinghead gas, or other related hydrocarbons.
(2) A division order may not alter or amend the terms of the underlying oil or gas lease. A division order does not relieve a lessee of any liabilities or obligations under the terms of the underlying oil or gas lease.
(3) A division order must be in writing and:
(a) must warrant the division of interest;
(b) must contain the name, address, and tax identification number of each interest owner to whom disbursements are made by the holder of the proceeds from the sale of oil, gas, casinghead gas, or other related hydrocarbons;
(c) must contain a provision requiring notice of change of ownership; and
(d) may contain any other terms that are necessary to facilitate the transaction.