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.
District of Columbia Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, With Depth Limitation A pooling agreement is a contract between a lessee (the oil and gas operator) and the royalty owners of two adjacent tracts of land in the District of Columbia. This agreement allows the lessee to combine the production from both tracts while providing compensation to the royalty owners based on their respective ownership percentages. The District of Columbia pooling agreement with depth limitation pertains to a specific type of pooling where the lessee can only extract resources from a specific depth range. This depth limitation ensures the protection of resources in different geological formations and allows for orderly development within the District of Columbia. By pooling the production from multiple tracts, lessees can optimize their operations and maximize resource recovery. This pooling agreement is particularly beneficial when the reservoir straddles two or more tracts or when individual tracts might not possess sufficient natural resources to support profitable extraction operations independently. Some key elements included in a District of Columbia pooling agreement between a lessee and royalty owners on two tracts with depth limitation are: 1. Cooperative Development: The agreement fosters collaboration between the lessee and royalty owners to develop and produce hydrocarbon resources effectively. It ensures that both parties work together towards the shared goal of maximizing resource recovery. 2. Ownership Percentages: The pooling agreement specifies the ownership percentages of each royalty owner in the combined production. These percentages are typically determined based on the size of the respective tracts and the initial negotiated terms. 3. Compensation Structure: The agreement outlines the compensation structure for the royalty owners. They receive a portion of the proceeds from the production based on their ownership percentages. This compensation can be in the form of royalties or overrides, as agreed upon in the pooling agreement. 4. Depth Limitation: The pooling agreement includes a depth limitation clause, which restricts the lessee from extracting resources from depths beyond a specified range. This prevents the lessee from encroaching into formations that might belong to other owners or require separate extraction techniques. In the District of Columbia, there can be variations of the pooling agreement with depth limitation based on specific requirements or circumstances. These variations may include agreements with different depth limitations, specific provisions for deep or shallow formations, or agreements tailored to unique geological characteristics of the specific tracts involved. In conclusion, a District of Columbia pooling agreement between a lessee and royalty owners on two tracts, with depth limitation, allows for the effective and coordinated development of oil and gas resources. It ensures equitable compensation for the royalty owners while promoting responsible extraction practices within the District of Columbia.District of Columbia Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, With Depth Limitation A pooling agreement is a contract between a lessee (the oil and gas operator) and the royalty owners of two adjacent tracts of land in the District of Columbia. This agreement allows the lessee to combine the production from both tracts while providing compensation to the royalty owners based on their respective ownership percentages. The District of Columbia pooling agreement with depth limitation pertains to a specific type of pooling where the lessee can only extract resources from a specific depth range. This depth limitation ensures the protection of resources in different geological formations and allows for orderly development within the District of Columbia. By pooling the production from multiple tracts, lessees can optimize their operations and maximize resource recovery. This pooling agreement is particularly beneficial when the reservoir straddles two or more tracts or when individual tracts might not possess sufficient natural resources to support profitable extraction operations independently. Some key elements included in a District of Columbia pooling agreement between a lessee and royalty owners on two tracts with depth limitation are: 1. Cooperative Development: The agreement fosters collaboration between the lessee and royalty owners to develop and produce hydrocarbon resources effectively. It ensures that both parties work together towards the shared goal of maximizing resource recovery. 2. Ownership Percentages: The pooling agreement specifies the ownership percentages of each royalty owner in the combined production. These percentages are typically determined based on the size of the respective tracts and the initial negotiated terms. 3. Compensation Structure: The agreement outlines the compensation structure for the royalty owners. They receive a portion of the proceeds from the production based on their ownership percentages. This compensation can be in the form of royalties or overrides, as agreed upon in the pooling agreement. 4. Depth Limitation: The pooling agreement includes a depth limitation clause, which restricts the lessee from extracting resources from depths beyond a specified range. This prevents the lessee from encroaching into formations that might belong to other owners or require separate extraction techniques. In the District of Columbia, there can be variations of the pooling agreement with depth limitation based on specific requirements or circumstances. These variations may include agreements with different depth limitations, specific provisions for deep or shallow formations, or agreements tailored to unique geological characteristics of the specific tracts involved. In conclusion, a District of Columbia pooling agreement between a lessee and royalty owners on two tracts, with depth limitation, allows for the effective and coordinated development of oil and gas resources. It ensures equitable compensation for the royalty owners while promoting responsible extraction practices within the District of Columbia.
