This declaration is used when a unit operator desires to supplement and amend a Declaration of Pooled Unit to include in the unit the oil, gas and mineral leases described in Exhibit A to this Supplement, covering lands within the confines of the Unit Area.
The Alabama Supplemental Declaration of Pooled Unit is a legal document that outlines the terms and conditions for the creation and operation of a pooled unit in the state of Alabama. A pooled unit refers to a group of oil, gas, or mineral interests that have been combined to form one consolidated unit for exploration, production, and distribution purposes. This Declaration serves as an extension to the original unitization agreement and provides additional details specific to the Alabama jurisdiction. It is typically prepared by a legal professional and requires the consent and participation of all parties involved. The Alabama Supplemental Declaration of Pooled Unit includes various essential components such as: 1. Identification of the Parties: The document identifies the parties involved in the creation and operation of the pooled unit. This typically includes operators, working interest owners, royalty interest owners, and possibly even non-participating interest owners. 2. Unit Ownership: It specifies the ownership interests of each party in the pooled unit, including percentages or fractions allocated to the operators, working interest owners, and royalty interest owners. The document may also define the criteria for acquiring or divesting unit interests. 3. Unit Operations: The Declaration outlines the procedures and guidelines for conducting operations within the pooled unit, including exploration, drilling, development, production, maintenance, and any associated costs or expenses. It may also address any environmental or conservation measures required by the state of Alabama. 4. Revenue Allocation: It describes the methods and formulas for distributing the proceeds from production within the pooled unit, ensuring that each party receives their fair share based on their ownership interest. This may include provisions for adjusting allocations in the event of changing production or commodity prices. 5. Decision-making Authority: The document addresses the decision-making process within the pooled unit, including voting rights and procedures for matters such as drilling permits, unit expansions, and additional leasing activities. It may also establish a management committee or designate an operator to oversee day-to-day operations. Types of Alabama Supplemental Declaration of Pooled Unit: 1. Oil and Gas Pooled Unit Declaration: This type of declaration specifically applies to the unitization of oil and gas interests in Alabama. It encompasses all the necessary provisions pertaining to oil and gas exploration, production, and revenue allocation within the unit. 2. Mineral Pooled Unit Declaration: This type of declaration focuses on the unitization of mineral interests other than oil and gas, such as coal, limestone, or other valuable minerals found in Alabama. It addresses the unique considerations and regulations applicable to mineral extraction and distribution. In summary, the Alabama Supplemental Declaration of Pooled Unit is a crucial document that governs the organization, operation, and distribution of resources within a pooled unit in Alabama. It ensures that all parties involved are protected and fairly compensated while promoting efficient and responsible exploration and production practices.The Alabama Supplemental Declaration of Pooled Unit is a legal document that outlines the terms and conditions for the creation and operation of a pooled unit in the state of Alabama. A pooled unit refers to a group of oil, gas, or mineral interests that have been combined to form one consolidated unit for exploration, production, and distribution purposes. This Declaration serves as an extension to the original unitization agreement and provides additional details specific to the Alabama jurisdiction. It is typically prepared by a legal professional and requires the consent and participation of all parties involved. The Alabama Supplemental Declaration of Pooled Unit includes various essential components such as: 1. Identification of the Parties: The document identifies the parties involved in the creation and operation of the pooled unit. This typically includes operators, working interest owners, royalty interest owners, and possibly even non-participating interest owners. 2. Unit Ownership: It specifies the ownership interests of each party in the pooled unit, including percentages or fractions allocated to the operators, working interest owners, and royalty interest owners. The document may also define the criteria for acquiring or divesting unit interests. 3. Unit Operations: The Declaration outlines the procedures and guidelines for conducting operations within the pooled unit, including exploration, drilling, development, production, maintenance, and any associated costs or expenses. It may also address any environmental or conservation measures required by the state of Alabama. 4. Revenue Allocation: It describes the methods and formulas for distributing the proceeds from production within the pooled unit, ensuring that each party receives their fair share based on their ownership interest. This may include provisions for adjusting allocations in the event of changing production or commodity prices. 5. Decision-making Authority: The document addresses the decision-making process within the pooled unit, including voting rights and procedures for matters such as drilling permits, unit expansions, and additional leasing activities. It may also establish a management committee or designate an operator to oversee day-to-day operations. Types of Alabama Supplemental Declaration of Pooled Unit: 1. Oil and Gas Pooled Unit Declaration: This type of declaration specifically applies to the unitization of oil and gas interests in Alabama. It encompasses all the necessary provisions pertaining to oil and gas exploration, production, and revenue allocation within the unit. 2. Mineral Pooled Unit Declaration: This type of declaration focuses on the unitization of mineral interests other than oil and gas, such as coal, limestone, or other valuable minerals found in Alabama. It addresses the unique considerations and regulations applicable to mineral extraction and distribution. In summary, the Alabama Supplemental Declaration of Pooled Unit is a crucial document that governs the organization, operation, and distribution of resources within a pooled unit in Alabama. It ensures that all parties involved are protected and fairly compensated while promoting efficient and responsible exploration and production practices.
