This Designation is executed by the Operator and Working Interest Owners and filed of record for the purpose of evidencing their election to exercise the pooling authority granted to the lessees in the Leases, to give notice of the Unit being established, and to identify and describe the lands included in the Unit.
The Michigan Designation of Pooled Unit and Declaration of Pooling is an important legal process in the oil and gas industry that allows for the combination of multiple lands or leases into a single production unit. This pooling mechanism is primarily used to efficiently extract oil or gas resources from a designated area, ensuring maximum utilization and minimizing waste. One type of pooling in Michigan is the voluntary pooling agreement. This type of agreement occurs when all the mineral rights owners within a specific area enter into a contract to pool their interests. Voluntary pooling allows for the consolidation of multiple ownership and enables cooperative drilling and production operations. Another type of pooling in Michigan is compulsory pooling. This process occurs when a minority interest owner in a mineral lease or land refuses to participate or cannot be reached for negotiation. In this case, the majority interest owner can petition the state regulatory agency, typically the Department of Natural Resources, to pool the lease or land. Compulsory pooling ensures fair and efficient use of the resources and prevents single owners from holding back development. The Designation of Pooled Unit and Declaration of Pooling is a legal document that outlines the terms and conditions of the pooling arrangement. It typically specifies the boundaries of the pooled unit, the participating owners, their respective interests, and the specific rules and regulations governing drilling, production, and revenue allocation within the unit. Keywords: Michigan, Designation of Pooled Unit, Declaration of Pooling, oil, gas, pooling agreement, voluntary pooling, compulsory pooling, mineral rights, drilling, production, cooperative operations, regulatory agency, Department of Natural Resources, resources, revenue allocation.The Michigan Designation of Pooled Unit and Declaration of Pooling is an important legal process in the oil and gas industry that allows for the combination of multiple lands or leases into a single production unit. This pooling mechanism is primarily used to efficiently extract oil or gas resources from a designated area, ensuring maximum utilization and minimizing waste. One type of pooling in Michigan is the voluntary pooling agreement. This type of agreement occurs when all the mineral rights owners within a specific area enter into a contract to pool their interests. Voluntary pooling allows for the consolidation of multiple ownership and enables cooperative drilling and production operations. Another type of pooling in Michigan is compulsory pooling. This process occurs when a minority interest owner in a mineral lease or land refuses to participate or cannot be reached for negotiation. In this case, the majority interest owner can petition the state regulatory agency, typically the Department of Natural Resources, to pool the lease or land. Compulsory pooling ensures fair and efficient use of the resources and prevents single owners from holding back development. The Designation of Pooled Unit and Declaration of Pooling is a legal document that outlines the terms and conditions of the pooling arrangement. It typically specifies the boundaries of the pooled unit, the participating owners, their respective interests, and the specific rules and regulations governing drilling, production, and revenue allocation within the unit. Keywords: Michigan, Designation of Pooled Unit, Declaration of Pooling, oil, gas, pooling agreement, voluntary pooling, compulsory pooling, mineral rights, drilling, production, cooperative operations, regulatory agency, Department of Natural Resources, resources, revenue allocation.
