Arkansas Designation of Pooled Unit for Oil and Gas is a legal process that allows multiple oil and gas leases in proximity to be combined and treated as a single production unit. This designation is crucial for effective extraction and exploration of hydrocarbon resources in Arkansas. The primary purpose of the Arkansas Designation of Pooled Unit for Oil and Gas is to prevent waste and maximize the recovery of oil and gas reserves. It involves merging leased tracts and creating a unified unit, which simplifies operations and allows for efficient drilling and production techniques. There are different types of Arkansas Designation of Pooled Unit for Oil and Gas, which vary based on the specific area and criteria set by the Arkansas Oil and Gas Commission (AGC). Below are some common types: 1. Field-Wide Pooled Unit: This type of designation combines all the individual leases within a given oil or gas field. It allows for comprehensive reservoir management, optimal infrastructure development, and overall resource extraction efficiency. 2. Formation-Specific Pooled Unit: In certain cases, the designated unit may be focused on a specific geological formation. This type allows for targeted exploration, development, and production of a particular formation within an oil or gas field. 3. Spacing Unit: This designation specifies the minimum distance within which wells can be drilled to effectively extract hydrocarbons. It ensures that the reservoir is not excessively drained or compromised due to overlapping activities. 4. Enhanced Recovery Unit: This type of designation is used when specialized techniques such as water flooding or gas injection are employed to maximize oil or gas recovery from a reservoir. It allows coordination and optimization of these enhanced recovery methods within the designated unit. The Arkansas Designation of Pooled Unit for Oil and Gas is a critical step in the development of hydrocarbon resources. It fosters cooperation among operators, facilitates efficient resource extraction, and promotes environmental stewardship. Operators must adhere to the criteria set by the AGC to ensure equitable distribution of production and sustainable utilization of Arkansas' oil and gas reserves.