Kansas Provisions That May Be Added to A Pooling Or Unit Designation

• Category: Oil Gas and Minerals - Pooling and Unitization
• State: Multi-State
• Control #: US-OG-369
• Format: Word; Rich Text

Description

This provision document contains termination, signature, and depth provisions which may be added to a pooling or unit designation.

Kansas Provisions That May Be Added to a Pooling Or Unit Designation In Kansas, there are specific provisions that may be added to a pooling or unit designation, which are outlined below: 1. Consent-Based Pooling: Consent-based pooling is one of the provisions that can be included in a pooling or unit designation in Kansas. This provision allows operators to pool together multiple oil and gas leases with the consent of all parties involved. It ensures that all leaseholders have equal rights and benefits from the pooled resources. 2. Compulsory Pooling: Compulsory pooling, also known as statutory pooling, is another provision that may be added to a pooling or unit designation in Kansas. This provision authorizes the Kansas Corporation Commission (KCC) to force certain leaseholders to participate in a drilling unit, even if they do not provide consent. It is typically used to efficiently develop oil and gas resources while safeguarding the rights of all parties involved. 3. Integration of Leasehold Interests: The integration of leasehold interests is a provision that can be added to a pooling or unit designation for efficient resource development. It allows an operator to combine contiguous leasehold interests in the purpose of drilling and production. This provision helps prevent the unnecessary duplication of wells and promotes the optimal use of resources. 4. Spacing Requirements: Spacing requirements are essential provisions that can be included in a pooling or unit designation in Kansas. These requirements dictate the minimum distance between wells in a drilling unit to avoid interference and ensure the efficient development of oil and gas resources. The Kansas Corporation Commission sets specific spacing regulations based on various factors such as formation characteristics and anticipated production rates. 5. Density Provisions: Density provisions are additional provisions that may be added to a pooling or unit designation in Kansas. These provisions define the maximum number of wells that can be drilled within a specific area. They are designed to prevent excessive well density and maintain the proper balance between resource extraction and environmental considerations. 6. Extension of Pooled Units: The extension of pooled units is a provision that can be included in a pooling or unit designation in Kansas. It allows for the extension of the initial pooling period beyond its original duration. This provision provides flexibility in the development of oil and gas resources, allowing sufficient time for drilling and production operations. 7. Allocation of Production: Allocation of production is a vital provision that can be included in a pooling or unit designation in Kansas. It outlines how the produced oil and gas will be allocated among the leaseholders within the drilling unit. This provision ensures a fair distribution of revenues based on each party's contribution to the unit's development. It is important to note that the specific provisions and their applicability may vary depending on the circumstances and regulatory requirements. It is advisable to consult legal and industry experts to ensure compliance with all applicable laws and regulations in Kansas.