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.
The Illinois Unit Agreement and Plan of Unitization is a legal framework established to govern the development, operation, and management of oil, gas, or mineral resources within a defined geographical area in the state of Illinois. This agreement facilitates the exploration and production of hydrocarbon reservoirs, ensuring efficient exploitation and fair distribution of resources among the stakeholders involved. The Illinois Unit Agreement and Plan of Unitization can apply to various types of resources, including conventional oil and gas fields, unconventional shale formations, and underground storage facilities. Different types of unit agreements and plans of unitization can be implemented depending on the specific characteristics of each project. Some common types include: 1. Conventional Oil and Gas Unit Agreement: This type of agreement is typically used for traditional oil and gas reservoirs where multiple wells are drilled and operated to extract hydrocarbons efficiently. The unit agreement outlines the boundaries of the unit area, defines the participating owners, and establishes rules for the allocation of production and expenses among the owners. 2. Shale Gas Unitization Agreement: Due to the complex nature of shale gas formations, a specific unit agreement is required to govern their development. This agreement addresses the unique challenges associated with horizontal drilling and hydraulic fracturing operations, as well as the division of royalties, land leases, and well spacing. 3. Underground Storage Unit Agreement: In some cases, underground storage facilities are established to store natural gas or petroleum products for later use. The unit agreement for such facilities defines the unit area, reservoir performance standards, and rules for injection, withdrawal, and storage capacity allocation among the participating owners. The Illinois Unit Agreement and Plan of Unitization aims to provide clarity and fairness to all parties involved in the extraction and utilization of natural resources. It protects the rights of landowners, ensures orderly and responsible resource development, and promotes the efficient use of shared infrastructure and resources. By establishing a cooperative framework, this agreement helps to minimize conflicts and maximize the economic potential of Illinois' natural resources.The Illinois Unit Agreement and Plan of Unitization is a legal framework established to govern the development, operation, and management of oil, gas, or mineral resources within a defined geographical area in the state of Illinois. This agreement facilitates the exploration and production of hydrocarbon reservoirs, ensuring efficient exploitation and fair distribution of resources among the stakeholders involved. The Illinois Unit Agreement and Plan of Unitization can apply to various types of resources, including conventional oil and gas fields, unconventional shale formations, and underground storage facilities. Different types of unit agreements and plans of unitization can be implemented depending on the specific characteristics of each project. Some common types include: 1. Conventional Oil and Gas Unit Agreement: This type of agreement is typically used for traditional oil and gas reservoirs where multiple wells are drilled and operated to extract hydrocarbons efficiently. The unit agreement outlines the boundaries of the unit area, defines the participating owners, and establishes rules for the allocation of production and expenses among the owners. 2. Shale Gas Unitization Agreement: Due to the complex nature of shale gas formations, a specific unit agreement is required to govern their development. This agreement addresses the unique challenges associated with horizontal drilling and hydraulic fracturing operations, as well as the division of royalties, land leases, and well spacing. 3. Underground Storage Unit Agreement: In some cases, underground storage facilities are established to store natural gas or petroleum products for later use. The unit agreement for such facilities defines the unit area, reservoir performance standards, and rules for injection, withdrawal, and storage capacity allocation among the participating owners. The Illinois Unit Agreement and Plan of Unitization aims to provide clarity and fairness to all parties involved in the extraction and utilization of natural resources. It protects the rights of landowners, ensures orderly and responsible resource development, and promotes the efficient use of shared infrastructure and resources. By establishing a cooperative framework, this agreement helps to minimize conflicts and maximize the economic potential of Illinois' natural resources.
