This form is used when royalty owners are the owners of royalty and mineral interests in Tracts 1 and 2, subject to the terms of Lease 1 and Lease 2. Recognizing that each of the Royalty Owners may not own an Interest in both Tracts 1 and 2, or may not own an identical Interest in Tracts 1 and 2, it is their desire, together with Lessee, to pool and unitize these two Tracts for oil and gas operations.
Arkansas Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, With Depth Limitation: A Comprehensive Overview Introduction: In Arkansas, the Pooling Agreement between a lessee and royalty owners on two tracts with depth limitation is a crucial document that governs the pooling of mineral interests and the exploration and production of oil and gas resources. This agreement aims to efficiently manage the extraction process while protecting the rights and interests of all parties involved. Here's a detailed description of what this agreement entails, along with key terms and variations. Key Terms and Definitions: 1. Pooling: Pooling refers to the consolidation of mineral interests from separate tracts into a single drilling and production unit. This allows for more effective exploration and extraction operations. The pooling agreement outlines the process of combining the leased acreage and royalties. 2. Lessee: The lessee is the individual or entity granted the right to explore and extract minerals from the specified tract(s) within the pooling agreement. The lessee is responsible for following the terms and conditions mentioned in the agreement. 3. Royalty Owners: Royalty owners are individuals or entities who own the rights to receive a portion of the revenue generated from the production and sale of extracted minerals. The pooling agreement ensures fair distribution of royalties among various owners. 4. Tracts: A tract refers to a specific piece of land identified in the pooling agreement. In this context, the agreement involves two tracts, allowing for the pooling of their respective mineral interests. 5. Depth Limitation: The depth limitation is a crucial aspect of the pooling agreement. It places restrictions on drilling depth, specifying the authorized depths for exploration and production activities. This ensures that only targeted reservoirs or formations are tapped, preventing the unauthorized extraction of minerals from other layers. Types of Arkansas Pooling Agreement Between Lessee and Royalty Owners on Two Tracts With Depth Limitation: 1. Standard Pooling Agreement: This is the most common type of pooling agreement where the lessee holds the rights to pool the mineral interests of the two identified tracts from a specific depth range. It outlines the terms, compensation, and obligations for both the lessee and royalty owners. 2. Depth-Specific Pooling Agreement: This agreement type sets a depth limitation for each tract individually. It allows for specialized drilling operations targeting depths unique to each tract while keeping separate accounting records. 3. Limited Term Pooling Agreement: In certain cases, the pooling agreement might have a specific duration or expiration date. This type of agreement ensures that the pooling is temporary and automatically ceases after a predetermined period unless otherwise extended or renegotiated. 4. Subject-Specific Pooling Agreement: This agreement type focuses on pooling only specific formations or reservoirs within the defined depths, allowing for targeted exploration while excluding others. It provides more control and precision over the extraction process. Conclusion: The Arkansas Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, With Depth Limitation is a vital legal instrument that facilitates the efficient and organized extraction of mineral resources. By establishing guidelines for pooling, compensation, and depth limitation, the rights and interests of both lessees and royalty owners are protected. Different variations of this agreement allow for customization based on the specific needs and objectives of stakeholders involved in the oil and gas industry.
