This Designation is executed by the Operator and Working Interest Owners and filed of record for the purpose of evidencing their election to exercise the pooling authority granted to the lessees in the Leases, to give notice of the Unit being established, and to identify and describe the lands included in the Unit.
The Arkansas Designation of Pooled Unit and Declaration of Pooling For Oil Or Gas is a legal document used in the state of Arkansas to establish the unitization or pooling of oil or gas resources within a designated area. This document plays a crucial role in facilitating efficient and responsible extraction of oil and gas reserves while ensuring fair distribution of proceeds among mineral rights owners. The purpose of the Arkansas Designation of Pooled Unit and Declaration of Pooling is twofold: firstly, to define and establish the geographical boundaries of the pooled unit, and secondly, to outline the terms and conditions under which the pooled unit operates. The pooling agreement generally specifies the participating tracts of land, the proportional ownership interests, and the distribution of costs and revenues associated with the extraction and production of oil or gas. There are several types of Arkansas Designation of Pooled Unit and Declaration of Pooling, depending on the specific circumstances and goals of the parties involved. Some common types include voluntary pooling, compulsory pooling, and lease integration. Voluntary pooling occurs when all the mineral rights owners within a defined area mutually agree to combine their interests into a single pooled unit. This agreement is typically reached through negotiations and often provides various benefits to the individual owners, such as reduced drilling costs and enhanced production potential. Compulsory pooling, on the other hand, involves the legal enforcement of pooling in situations where certain mineral rights owners within a defined area do not voluntarily agree to participate in the pooled unit. The Arkansas Oil and Gas Commission may grant compulsory pooling requests if it determines that it is in the best interest of the development and conservation of oil or gas resources. Compulsory pooling ensures that the maximum recovery of hydrocarbons can be achieved by preventing isolated pockets of reserves. Lease integration, also known as lease pooling, typically occurs when multiple oil or gas leases collectively cover an area with overlapping boundaries. This type of pooling allows for the unified development and operation of these leases, eliminating redundancy and enhancing efficiency in drilling and production activities. It is important to note that the specific requirements, procedures, and regulations regarding the Arkansas Designation of Pooled Unit and Declaration of Pooling can vary based on state laws and regulations. Parties intending to initiate a pooling agreement should consult with legal professionals well-versed in Arkansas oil and gas laws to ensure compliance and successful implementation.The Arkansas Designation of Pooled Unit and Declaration of Pooling For Oil Or Gas is a legal document used in the state of Arkansas to establish the unitization or pooling of oil or gas resources within a designated area. This document plays a crucial role in facilitating efficient and responsible extraction of oil and gas reserves while ensuring fair distribution of proceeds among mineral rights owners. The purpose of the Arkansas Designation of Pooled Unit and Declaration of Pooling is twofold: firstly, to define and establish the geographical boundaries of the pooled unit, and secondly, to outline the terms and conditions under which the pooled unit operates. The pooling agreement generally specifies the participating tracts of land, the proportional ownership interests, and the distribution of costs and revenues associated with the extraction and production of oil or gas. There are several types of Arkansas Designation of Pooled Unit and Declaration of Pooling, depending on the specific circumstances and goals of the parties involved. Some common types include voluntary pooling, compulsory pooling, and lease integration. Voluntary pooling occurs when all the mineral rights owners within a defined area mutually agree to combine their interests into a single pooled unit. This agreement is typically reached through negotiations and often provides various benefits to the individual owners, such as reduced drilling costs and enhanced production potential. Compulsory pooling, on the other hand, involves the legal enforcement of pooling in situations where certain mineral rights owners within a defined area do not voluntarily agree to participate in the pooled unit. The Arkansas Oil and Gas Commission may grant compulsory pooling requests if it determines that it is in the best interest of the development and conservation of oil or gas resources. Compulsory pooling ensures that the maximum recovery of hydrocarbons can be achieved by preventing isolated pockets of reserves. Lease integration, also known as lease pooling, typically occurs when multiple oil or gas leases collectively cover an area with overlapping boundaries. This type of pooling allows for the unified development and operation of these leases, eliminating redundancy and enhancing efficiency in drilling and production activities. It is important to note that the specific requirements, procedures, and regulations regarding the Arkansas Designation of Pooled Unit and Declaration of Pooling can vary based on state laws and regulations. Parties intending to initiate a pooling agreement should consult with legal professionals well-versed in Arkansas oil and gas laws to ensure compliance and successful implementation.
