Kansas Designation of Pooled Unit For Oil and Gas

• Category: Oil Gas and Minerals - Pooling and Unitization
• State: Multi-State
• Control #: US-OG-378
• Format: Word; Rich Text

Description

This form is used by an Operator as a formal declaration that the Leases described are combined and pooled, as to the Lands described, to create a pooled unit. The Kansas Designation of Pooled Unit for Oil and Gas refers to the legal process in the state of Kansas that allows multiple oil and gas leases to be combined into a single drilling unit. This unit, known as a pooled unit or a spacing unit, helps facilitate the efficient and optimal extraction of oil and gas resources. When developing an oil and gas field, operators often encounter fragmented ownership of mineral rights, making it difficult to efficiently extract resources. The Designation of Pooled Unit provides a solution by allowing the consolidation of these various leases into a single unit, allowing for unified operations. There are several types of Designation of Pooled Unit frameworks recognized in Kansas, each with its own purpose and characteristics. Some of these include: 1. Conventional Pooled Unit: This is the most common type of pooled unit used in Kansas. It combines individual mineral interests from multiple leases located within a defined geographic area. The acreage and oil/gas well density requirements are specified by the Kansas Corporation Commission (KCC). 2. Enhanced Recovery Unit (ERA): An ERA is designated for the purpose of implementing advanced recovery techniques, such as water flooding or gas injection, to extract additional oil or gas from a reservoir. This type of unit allows for the implementation of enhanced recovery methods that may not be economically feasible on an individual lease basis. 3. Drilling Spacing Unit (DSU): A DSU is a unit formed to establish drilling spacing requirements, which specify the maximum number and location of wells that can be drilled within a defined area. These units ensure the proper development and spacing of wells to prevent reservoir damage and maximize production efficiency. 4. Secondary Recovery Unit (SRU): In some cases, secondary recovery methods such as water flooding or gas injection are used to extract remaining oil or gas from a depleted reservoir. An SRU is created to manage these operations and facilitate the strategic injection and extraction of fluids. By consolidating leases into a designated pooled unit, operators can effectively coordinate drilling activities, manage production rates, and allocate costs and revenues among leaseholders. The Kansas Designation of Pooled Unit for Oil and Gas promotes cooperative development, safeguards the rights of all participating parties, and encourages the responsible and efficient utilization of oil and gas resources in the state.

The Kansas Designation of Pooled Unit for Oil and Gas refers to the legal process in the state of Kansas that allows multiple oil and gas leases to be combined into a single drilling unit. This unit, known as a pooled unit or a spacing unit, helps facilitate the efficient and optimal extraction of oil and gas resources. When developing an oil and gas field, operators often encounter fragmented ownership of mineral rights, making it difficult to efficiently extract resources. The Designation of Pooled Unit provides a solution by allowing the consolidation of these various leases into a single unit, allowing for unified operations. There are several types of Designation of Pooled Unit frameworks recognized in Kansas, each with its own purpose and characteristics. Some of these include: 1. Conventional Pooled Unit: This is the most common type of pooled unit used in Kansas. It combines individual mineral interests from multiple leases located within a defined geographic area. The acreage and oil/gas well density requirements are specified by the Kansas Corporation Commission (KCC). 2. Enhanced Recovery Unit (ERA): An ERA is designated for the purpose of implementing advanced recovery techniques, such as water flooding or gas injection, to extract additional oil or gas from a reservoir. This type of unit allows for the implementation of enhanced recovery methods that may not be economically feasible on an individual lease basis. 3. Drilling Spacing Unit (DSU): A DSU is a unit formed to establish drilling spacing requirements, which specify the maximum number and location of wells that can be drilled within a defined area. These units ensure the proper development and spacing of wells to prevent reservoir damage and maximize production efficiency. 4. Secondary Recovery Unit (SRU): In some cases, secondary recovery methods such as water flooding or gas injection are used to extract remaining oil or gas from a depleted reservoir. An SRU is created to manage these operations and facilitate the strategic injection and extraction of fluids. By consolidating leases into a designated pooled unit, operators can effectively coordinate drilling activities, manage production rates, and allocate costs and revenues among leaseholders. The Kansas Designation of Pooled Unit for Oil and Gas promotes cooperative development, safeguards the rights of all participating parties, and encourages the responsible and efficient utilization of oil and gas resources in the state.