Delaware Production and Storage Unit Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1092
• Format: Word; Rich Text

Description

This form of Agreement may be used to create a Unit for the purposes of producing oil and gas on a pooled unit basis, from existing producing leases.

Delaware Production and Storage Unit Agreement, also known as DP SUA, is a contractual agreement that determines the ownership and operation rights for oil, gas, and mineral production and storage facilities in the state of Delaware. This agreement serves as a legal framework between owners or operators of production wells and storage units, and is regulated by the Delaware Department of Natural Resources and Environmental Control (DN REC). There are several types of Delaware Production and Storage Unit Agreements, each catering to different aspects of production and storage operations. Here are some notable types: 1. Primary Production and Storage Unit Agreement: This agreement establishes the primary unit within which the production and storage operations will be conducted. It outlines the boundaries, ownership interests, and operational guidelines for the primary unit. 2. Secondary Production and Storage Unit Agreement: Once the primary unit is established, secondary units may be formed within the primary unit as needed. Secondary unit agreements lay out the specific terms and conditions that apply to the operations within these sub-units. 3. Exploration and Development Agreement: Prior to production and storage operations, exploration and development agreements are signed between parties involved in the initial investigation and assessment phase. These agreements determine the rights, obligations, and financial considerations associated with exploration and development activities. 4. Joint Operating Agreement (JOB): Jobs are commonly associated with the Delaware Production and Storage Unit Agreement framework. These agreements establish the relationship between multiple parties involved in production and storage operations. Jobs specify the decision-making process, cost and revenue sharing, and each party's responsibilities throughout the project. 5. Service Provider Agreement: In some cases, companies specializing in production or storage services may enter into contracts with operators or owners through service provider agreements. These agreements define the scope of work, pricing, and performance expectations for the contracted services. Delaware Production and Storage Unit Agreements are essential in regulating the extraction, processing, and storage of valuable resources within the state. These agreements ensure fair allocation of rights, responsibilities, and benefits among involved parties, fostering a well-managed and efficient energy industry.