This form is used when royalty owners are the owners of royalty and mineral interests in Tracts 1 and 2, subject to the terms of Lease 1 and Lease 2. Recognizing that each of the Royalty Owners may not own an Interest in both Tracts 1 and 2, or may not own an identical Interest in Tracts 1 and 2, it is their desire, together with Lessee, to pool and unitize these two Tracts for oil and gas operations.
A Mississippi Pooling Agreement is a legal contract between a lessee (the person or entity who holds the oil and gas lease) and royalty owners on two separate tracts of land in Mississippi. This agreement is specifically designed to establish the guidelines and terms by which the lessee can pool the resources of both tracts for efficient and cost-effective extraction of oil and gas reserves. The key element in this type of pooling agreement is the inclusion of a depth limitation. The depth limitation refers to the specified depth at which the pooling of resources between the tracts can occur. This limitation ensures that only the reserves found below the agreed depth can be collectively accessed, leaving the reserves above the limit solely for the benefit of each individual tract's royalty owners. Mississippi pooling agreements can vary based on the specific terms and conditions negotiated between the lessee and royalty owners. Different types and variations of this agreement include: 1. Depth-based Mississippi Pooling Agreement: This type of pooling agreement specifies the exact depth below which the pooling of oil and gas resources is allowed. It clearly defines the limits within which the lessee can combine the resources of both tracts while respecting the rights of individual royalty owners above the predetermined depth limitation. 2. Royalty Distribution Agreement: In some cases, the Mississippi Pooling Agreement may also include a provision for the distribution of royalty payments among the royalty owners of the two tracts. This provision outlines the agreed-upon formula or method for distributing the pooled royalties based on well production or other predetermined criteria. 3. Periodic Evaluation and Renewal: To ensure transparency and fairness, parties involved in a Mississippi Pooling Agreement may agree to periodic evaluations and possible renewals. This allows them to review the agreement, assess its effectiveness, and make any necessary adjustments or renewals to further optimize the pooling arrangement between the lessee and royalty owners. 4. Surface Use Agreement: While not directly related to the pooling of resources, a surface use agreement may be included in the overall Mississippi Pooling Agreement. This agreement defines the terms by which the lessee can access and utilize the surface area of the tracts, addressing considerations such as fencing, access roads, environmental protection, and compensation for surface damages. Overall, a Mississippi Pooling Agreement with a depth limitation is a crucial legal instrument that facilitates the cooperative extraction of oil and gas reserves from multiple tracts while protecting the rights of individual royalty owners. This agreement ensures efficiency, minimizes duplicate drilling operations, and optimizes the extraction process, promoting a mutually agreed-upon approach to resource development in the state of Mississippi.
