Arkansas Unit Operating Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-761
• Format: Word; Rich Text

Description

This agreement form is used when the Parties, as Working Interest Owners, have executed an agreement which provides for a separate agreement by the Working Interest Owners to provide for Unit Operations as defined in the Unit Agreement. An Arkansas Unit Operating Agreement is a legal contract that outlines the working relationship and responsibilities among parties involved in the exploration, development, and production of oil and gas resources in the state of Arkansas. It is a crucial document that establishes the framework for joint operations and defines the rights, obligations, and liabilities of the involved parties. Keywords: Arkansas, Unit Operating Agreement, oil, gas, exploration, development, production, resources, joint operations, rights, obligations, liabilities. There are primarily two types of Arkansas Unit Operating Agreements: 1. Voluntary Unit Operating Agreement: This type of agreement is entered into voluntarily by oil and gas operators in Arkansas to form a cooperative unit or pool for the purpose of developing and producing oil and gas resources. It allows the participating parties to combine their individual tracts of land and resources into a single unit, enabling more efficient and cost-effective operations. 2. Compulsory Unit Operating Agreement: In certain scenarios, when an operator intends to drill a well within a common source of supply or geological formation but cannot reach an agreement with other affected parties, the Arkansas Oil and Gas Commission has the authority to establish a compulsory unit. A compulsory unit can be formed through the Compulsory Unitization Committee or under specific circumstances defined in the Arkansas Code. The Compulsory Unit Operating Agreement is then executed to regulate the joint operations and allocation of costs, risks, and benefits among the parties. Overall, an Arkansas Unit Operating Agreement aims to ensure proper coordination, equitable sharing of costs and revenues, and efficient management of oil and gas operations while providing legal protection and clarity to all parties involved. Keywords: voluntary unit operating agreement, compulsory unit operating agreement, Arkansas Oil and Gas Commission, compulsory unitization committee, common source of supply, geological formation, oil and gas operations, costs, revenues, management, legal protection, clarity.

An Arkansas Unit Operating Agreement is a legal contract that outlines the working relationship and responsibilities among parties involved in the exploration, development, and production of oil and gas resources in the state of Arkansas. It is a crucial document that establishes the framework for joint operations and defines the rights, obligations, and liabilities of the involved parties. Keywords: Arkansas, Unit Operating Agreement, oil, gas, exploration, development, production, resources, joint operations, rights, obligations, liabilities. There are primarily two types of Arkansas Unit Operating Agreements: 1. Voluntary Unit Operating Agreement: This type of agreement is entered into voluntarily by oil and gas operators in Arkansas to form a cooperative unit or pool for the purpose of developing and producing oil and gas resources. It allows the participating parties to combine their individual tracts of land and resources into a single unit, enabling more efficient and cost-effective operations. 2. Compulsory Unit Operating Agreement: In certain scenarios, when an operator intends to drill a well within a common source of supply or geological formation but cannot reach an agreement with other affected parties, the Arkansas Oil and Gas Commission has the authority to establish a compulsory unit. A compulsory unit can be formed through the Compulsory Unitization Committee or under specific circumstances defined in the Arkansas Code. The Compulsory Unit Operating Agreement is then executed to regulate the joint operations and allocation of costs, risks, and benefits among the parties. Overall, an Arkansas Unit Operating Agreement aims to ensure proper coordination, equitable sharing of costs and revenues, and efficient management of oil and gas operations while providing legal protection and clarity to all parties involved. Keywords: voluntary unit operating agreement, compulsory unit operating agreement, Arkansas Oil and Gas Commission, compulsory unitization committee, common source of supply, geological formation, oil and gas operations, costs, revenues, management, legal protection, clarity.