This form is used when Owners desire to consolidate, pool, and unitize Lands and Leases to facilitate the exploration for development of, and production of gas and associated hydrocarbons. Under the terms and provisions of each of the Leases, the Owners of the Leases have the right to consolidate, pool, and unitize all of the Lands, and the leasehold and royalty in the Lands, into one consolidated, pooled, and unitized area for the exploration, development, and production of gas.
Kansas Designation of Gas Unit is a term used in the oil and gas industry to identify and regulate the measurement and allocation of natural gas production in the state of Kansas, United States. The Kansas Corporation Commission (KCC), which oversees the exploration, production, and conservation of oil and natural gas resources in Kansas, has established specific regulations and guidelines for the designation and operation of gas units. The primary purpose of the Kansas Designation of Gas Unit is to determine the physical boundaries of an area that will be considered as a single unit for the extraction and production of natural gas. This allows operators and producers to efficiently manage and allocate resources while ensuring a fair distribution of royalties among mineral owners and stakeholders. There are several types of gas units recognized in Kansas, including: 1. Drilling or well unit: This type of gas unit is established around an individual well bore and consists of the area drilled or proposed to be drilled by that well. It is typically defined by the distance or radius within which the extraction of natural gas can affect the well's productivity. 2. Proration unit: A proration unit encompasses multiple wells within a specified geographical area, typically an entire lease or field. These units are designated to determine the total allowable production from all the wells within the unit and to allocate it among the operators or working interest owners in a fair and equitable manner. 3. Combining unit: Sometimes, multiple drilling or proration units might be combined to form a larger area for efficient operations or resource management. The combining units are created by consolidating contiguous or nearby established gas units. 4. Redetermination unit: A redetermination unit is formed when changes occur in the ownership, operation, or production of a gas unit. These changes may include modifications in the percentage of ownership interest, the installation of additional wells, or adjustments in the reservoir boundaries or geologic characteristics. The redetermination units are reviewed and approved by the KCC to ensure accurate measurement and allocation of natural gas production. The designation of gas units and the regulations surrounding them play a crucial role in promoting responsible and sustainable natural gas production in Kansas. They contribute to the optimal utilization of resources while safeguarding the rights of mineral owners and maintaining environmental standards. Overall, the Kansas Designation of Gas Unit framework is designed to streamline operations, encourage fair allocation, and ensure compliance within the state's oil and gas industry.
