This Agreement is entered into, between the parties subscribing, ratifying, or consenting to it. The Parties are the owners of working, royalty, or other oil and gas interests in the Unit Area subject to this Agreement.
The Mineral Leasing Act of February 25, 1920, 41 Stat. 437, as amended, 30 U.S.C., Secs. 181 et seq., authorizes Federal lessees and their representatives to unite with each other, or jointly or separately with others, in collectively adopting and operating a cooperative or unit plan of development or operation of all or any part of any oil or gas pool, field, or like area, for the purposes of more properly conserving the natural resources whenever determined and certified by the Secretary of the Interior of the United States, to be necessary or advisable in the public interest.
Guam Unit Agreement and Plan of Unitization: Explained The Guam Unit Agreement and Plan of Unitization is a legal document established to govern the exploration, production, and overall management of hydrocarbon reservoirs located within the jurisdiction of Guam. It is a crucial framework designed to ensure the efficient development and optimal recovery of oil and natural gas resources while minimizing conflicts and preventing waste. This agreement and plan primarily address the collaborative efforts of multiple operators who have a shared interest in a particular reservoir or field. By pooling their resources, skills, and technical expertise, operators work together under a unified management structure to maximize the economic benefits of hydrocarbon production. Keywords: 1. Guam: Refers to the United States territory in the Western Pacific where the Unit Agreement and Plan of Unitization is applicable. 2. Unit Agreement: Denotes the contract or agreement entered into by multiple operators, outlining the terms and conditions governing the joint development and operation of a hydrocarbon reservoir. 3. Plan of Unitization: Describes the detailed plan and strategies for the efficient exploitation and production of oil and natural gas from a shared reservoir. It encompasses production limits, cost allocations, technical considerations, and revenue sharing among the involved parties. 4. Hydrocarbon reservoir: Refers to a natural underground deposit containing oil and/or natural gas that is targeted for exploration and production activities. 5. Exploration: Encompasses activities such as geological surveys, seismic data acquisition, and drilling to identify and evaluate potential hydrocarbon reserves. 6. Production: Involves the extraction, separation, and processing of oil and natural gas from the reservoirs, followed by transportation and distribution to end-users. 7. Waste prevention: A key objective of the agreement is to minimize the wasteful dissipation of resources like oil and gas during extraction, thereby maximizing recovery and economic returns. 8. Economic benefits: Refers to the financial advantages generated by the production and sale of oil and natural gas, including royalty payments, taxes, and job creation. Types of Guam Unit Agreement and Plan of Unitization: 1. Full Unitization Agreement: Involves a comprehensive agreement entered into between multiple operators, pooling their resources and agreeing to jointly develop and operate the entire hydrocarbon reservoir as a single unit. It aims to achieve maximum coordination and efficiency by integrating operations and minimizing redundant infrastructure. 2. Partial Unitization Agreement: This type of agreement focuses on a specific portion or zone within a hydrocarbon reservoir. Operators agree to combine their efforts and resources solely for the extraction and production purposes related to that specific segment, while other parts may be developed independently by individual operators. It is important to note that the specific terms and conditions of the Guam Unit Agreement and Plan of Unitization can vary depending on the local regulatory framework, geological characteristics of the reservoir, and the objectives of the involved parties.
