Idaho Production and Storage Unit Agreement (IPSA) is a legal contract that governs the production and storage activities of oil and gas resources within a designated unit in the state of Idaho, USA. This agreement is established between all the working interest owners in the production area or field with the objective of efficiently managing and maximizing the recovery of hydrocarbon reserves. The IPSA serves as a comprehensive framework that outlines the rights, obligations, and responsibilities of all parties involved in the exploration, development, production, and storage activities within the designated unit. It ensures a fair and equitable distribution of costs, royalties, and benefits among the working interest owners. The IPSA typically includes several key components such as: 1. Unit Area Description: This section specifies the boundaries and size of the designated unit, which encompasses the oil and gas production area. 2. Participating Interest: The agreement defines the working interest of each party involved in the IPSA, which determines their proportionate share of costs, revenues, and storage space. 3. Operations and Management: The IPSA sets forth guidelines for conducting operations, including drilling, well completion, work over activities, and safety measures. It may also address issues related to infrastructure development, facilities, and equipment. 4. Allocation of Costs and Revenues: The agreement establishes the formula and methodology for cost allocation, taking into account factors such as exploration, development, drilling, production, and storage operations. It also provides guidelines for revenue sharing and distribution. 5. Storage Right and Capacity: In cases where the unit includes storage activities, the IPSA outlines the procedures for granting storage rights, determining storage capacities, prioritizing usage, and resolving conflicts related to storage facilities. 6. Termination and Dispute Resolution: The agreement includes provisions for termination of the IPSA, such as expiration, non-performance, or unanimous consent of the working interest owners. It also specifies the mechanisms for resolving disputes or disagreements that may arise during the operations. Types of IPSA agreements may vary based on the specific oil and gas reservoirs, the characteristics of the hydrocarbon resources, and the preferences of the involved parties. However, these variations typically fall under two broad categories: 1. Exploration and Production (E&P) IPSA: This type of agreement focuses primarily on the exploration, development, and production activities within the designated unit. It may not involve storage components. 2. Production and Storage (P&S) IPSA: This agreement encompasses both hydrocarbon production and storage operations within the designated unit. It may be applicable in areas where natural underground formations have the potential to serve as storage reservoirs, allowing for the injection and withdrawal of oil, gas, or other substances. In summary, Idaho Production and Storage Unit Agreement (IPSA) is a legally binding contract that establishes the rules and regulations for oil and gas production and/or storage activities within a defined unit. It ensures efficient resource recovery, cost allocation, and fair revenue distribution among the participating working interest owners.
Idaho Production and Storage Unit Agreement
Category:
State:
Multi-State
Control #:
US-OG-1092
Format:
Word;
Rich Text
Instant download
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.
Idaho Production and Storage Unit Agreement (IPSA) is a legal contract that governs the production and storage activities of oil and gas resources within a designated unit in the state of Idaho, USA. This agreement is established between all the working interest owners in the production area or field with the objective of efficiently managing and maximizing the recovery of hydrocarbon reserves. The IPSA serves as a comprehensive framework that outlines the rights, obligations, and responsibilities of all parties involved in the exploration, development, production, and storage activities within the designated unit. It ensures a fair and equitable distribution of costs, royalties, and benefits among the working interest owners. The IPSA typically includes several key components such as: 1. Unit Area Description: This section specifies the boundaries and size of the designated unit, which encompasses the oil and gas production area. 2. Participating Interest: The agreement defines the working interest of each party involved in the IPSA, which determines their proportionate share of costs, revenues, and storage space. 3. Operations and Management: The IPSA sets forth guidelines for conducting operations, including drilling, well completion, work over activities, and safety measures. It may also address issues related to infrastructure development, facilities, and equipment. 4. Allocation of Costs and Revenues: The agreement establishes the formula and methodology for cost allocation, taking into account factors such as exploration, development, drilling, production, and storage operations. It also provides guidelines for revenue sharing and distribution. 5. Storage Right and Capacity: In cases where the unit includes storage activities, the IPSA outlines the procedures for granting storage rights, determining storage capacities, prioritizing usage, and resolving conflicts related to storage facilities. 6. Termination and Dispute Resolution: The agreement includes provisions for termination of the IPSA, such as expiration, non-performance, or unanimous consent of the working interest owners. It also specifies the mechanisms for resolving disputes or disagreements that may arise during the operations. Types of IPSA agreements may vary based on the specific oil and gas reservoirs, the characteristics of the hydrocarbon resources, and the preferences of the involved parties. However, these variations typically fall under two broad categories: 1. Exploration and Production (E&P) IPSA: This type of agreement focuses primarily on the exploration, development, and production activities within the designated unit. It may not involve storage components. 2. Production and Storage (P&S) IPSA: This agreement encompasses both hydrocarbon production and storage operations within the designated unit. It may be applicable in areas where natural underground formations have the potential to serve as storage reservoirs, allowing for the injection and withdrawal of oil, gas, or other substances. In summary, Idaho Production and Storage Unit Agreement (IPSA) is a legally binding contract that establishes the rules and regulations for oil and gas production and/or storage activities within a defined unit. It ensures efficient resource recovery, cost allocation, and fair revenue distribution among the participating working interest owners.
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