Navigating the intricacies of oil and gas transaction paperwork requires a firm understanding of various legal documents, one of which is the Transfer Order Letter. This crucial document facilitates a seamless transition of ownership and ensures that payments for oil and gas production are accurately directed to the new owner post-acquisition. The letter serves not only as a notification of the change in ownership but also as a request for the purchaser to acknowledge this change and adjust their payment records accordingly. It outlines the agreement between the buying and selling corporations, in this case, ABC Petroleum Corporation acquiring interests from XYZ Resources Corporation, effective from a specified date. The letter demands the continuation of payments without suspension, adherence to previously agreed terms, and the transfer of payment obligations to the new owner. Furthermore, it incorporates indemnification clauses to protect the purchaser against any liability arising from the transfer. Alongside the letter, an exhibit detailing the specific properties involved in the transaction is attached for clarity. This document exemplifies the meticulous attention to detail required in the oil and gas industry to ensure financial and operational transitions occur without disruptions, illustrating a blend of legal foresight and industry-specific protocol.
| Question | Answer |
|---|---|
| Form Name | Trancefer Order Latter Form |
| Form Length | 2 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 30 sec |
| Other names | letter in lieu of orders, letter in lieu of orders template, transfer order letter format, is an irrevocable transfer order a guarantee letter form pdf example |
(Date)
Purchaser
Purchaser Address
City, State Zip
Re: Letter in Lieu of Division Orders or Transfer Orders
Gentlemen:
You are currently purchasing production from or are accounting to XYZ Resources Corporation (“XYZ”) for the proceeds of production from the oil and gas wells and/or units described on the attached Exhibit “A” (the “Properties”). XYZ or its predecessors have previously executed your Division Orders, Transfer Orders and/or other Purchase Agreements covering production from the Properties. ABC Petroleum Corporation (“ABC”) has acquired all of XYZ’s interest in the Properties effective as of
__________, 20____ (the “Effective Date”).
XYZ and ABC hereby request your acceptance of the Letter for purposes of recognizing the ownership of ABC as to such interest in the Properties. After receipt of this letter, please begin accounting after the Effective Date to the following:
Remittances: ABC Petroleum Corporation
Anystreet
Anytown, Anystate, AnyZip
Tax ID # _________________
PLEASE DO NOT SUSPEND PAYMENTS. In consideration for accepting this Letter in Lieu of Division Orders or Transfer Orders, ABC (i) agrees to all of the terms, covenants and conditions of your Division Orders or Transfer Orders in effect for the Properties as to the interest assigned to ABC, (ii) agrees to be bound by those terms as if ABC had originally executed such Division Orders or Transfer Orders, and (iii) agrees to indemnify you for making payments in the manner requested in this Letter. XYZ and ABC have agreed that revenues attributable to production purchased by you and payable for all periods prior to the Effective Date will be paid directly to XYZ and ABC requests that all revenues arising from purchases subsequent to the Effective Date be paid directly to ABC. For clarification purposes, revenues associated with _______, 20__ production
and sales, shall be paid directly to ABC. Please revise your records to reflect this change.
In order that we may have a record evidencing your receipt of this letter, we request that you sign and return one (1) copy of this letter to ABC.
Yours truly,
XYZ RESOURCES, INC.
By:
ABC PETROLEUM CORPORATION
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We have changed our records effective |
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(Purchaser) |
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(Attach Exhibit of Properties)