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.
Detailed Description of Guam Designation of Pooled Unit and Declaration of Pooling for Oil or Gas Keywords: Guam, designation of pooled unit, declaration of pooling, oil, gas, resources, regulations. Introduction: Guam, an unincorporated territory of the United States, possesses abundant natural resources, including oil and gas reserves. To ensure the efficient extraction and management of these resources, the Guam Designation of Pooled Unit and Declaration of Pooling for Oil or Gas framework is implemented. This framework establishes guidelines and regulations for pooling oil and gas interests, allowing multiple owners or leaseholders to collectively develop and optimize resource extraction activities. Types of Guam Designation of Pooled Unit and Declaration of Pooling: 1. Voluntary Pooling: Voluntary pooling refers to an agreement between multiple owners or leaseholders in Guam to consolidate their interests and jointly develop oil or gas resources. This type of pooling is initiated by the consenting parties and typically requires mutual coordination, negotiation, and legal documentation. 2. Compulsory Pooling: Compulsory pooling involves the legal compulsion of owners or leaseholders in Guam to pool their interests in oil or gas resources. This is often enforced to prevent resource wastage or to enhance the efficiency of extraction operations. Compulsory pooling may be initiated by government authorities or regulatory agencies to best utilize the available resources. Process of Designation of Pooled Unit and Declaration of Pooling: 1. Initial Assessment: Before initiating the designation of a pooled unit and declaration of pooling, a comprehensive assessment is conducted, evaluating the potential oil or gas reservoirs, geological formations, and related data. This helps determine the viability and profitability of the pooling effort. 2. Identification of Stakeholders: The next step involves identifying all relevant parties holding oil or gas interests within the designated area or leaseholds. This includes leaseholders, landowners, operators, and other stakeholders associated with the resources. 3. Negotiation and Agreement: Once the stakeholders are identified, negotiations are undertaken to reach a consensus on pooling their interests. This involves discussions on resource ownership percentages, development plans, operational responsibilities, and economic considerations. Agreements are drafted, specifying the terms of the pooling arrangement, including the designated area and the duration of the pooling agreement. 4. Regulatory Approval: After reaching an agreement, the designated pooled unit and declaration of pooling require regulatory approval from the appropriate authorities in Guam. This ensures compliance with local laws, regulations, and environmental standards. 5. Pooling Operations and Management: Once approved, the pooled unit becomes operational, allowing the collective extraction and development of oil or gas resources. Stakeholders work together to coordinate drilling activities, production processes, infrastructure maintenance, and revenue sharing. 6. Reporting and Auditing: Regular reporting and auditing of the pooled unit's operations are essential to monitor production levels, resource conservation, environmental compliance, and adherence to the pooling agreement. The authorities ensure transparency and fair distribution of profits among the stakeholders. Conclusion: The Guam Designation of Pooled Unit and Declaration of Pooling for Oil or Gas framework serves as a crucial mechanism for the efficient and responsible development of oil and gas resources in Guam. By encouraging cooperation, optimal resource utilization, and regulatory compliance, this framework ensures long-term sustainability and economic benefits for all stakeholders involved.
