This declaration is used when a unit operator desires to supplement and amend a Declaration of Pooled Unit to include in the unit the oil, gas and mineral leases described in Exhibit A to this Supplement, covering lands within the confines of the Unit Area.
The Montana Supplemental Declaration of Pooled Unit is a legal document specific to the state of Montana that pertains to the formation and operation of pooled units for oil and gas exploration and production. Pooled units are formed when multiple leaseholders join their interests together to collectively develop and produce oil and gas resources from a designated area. This declaration serves as a supplement to the original lease agreements and outlines the rules and regulations governing the creation and administration of the pooled unit. Key provisions included in the Montana Supplemental Declaration of Pooled Unit typically address: 1. Unit boundaries: The declaration specifies the geographical extent of the pooled unit, which is often delineated by a legal description or plat map coordinates. 2. Unit participants: It identifies the leaseholders who have voluntarily agreed to join their leases and become part of the pooled unit. Each participant's proportionate interest in the unit is also outlined. 3. Joint operations: The declaration establishes guidelines for joint operations within the pooled unit, including drilling, development, production, and other related activities. It may cover issues such as well spacing, surface use, access rights, and environmental considerations. 4. Cost allocation and revenue distribution: The document outlines how costs incurred in the development and operation of the unit will be allocated among the participants. Similarly, it addresses how the revenue generated from the sale of oil and gas produced from the unit will be distributed among the leaseholders. 5. Unit operator: The declaration designates an operator responsible for managing the pooled unit's daily operations. The operator is typically chosen based on their technical expertise and financial capabilities. It is important to note that there may be variations or different types of Montana Supplemental Declaration of Pooled Unit, depending on the specific circumstances and agreements between the parties involved. Some additional variations or categories may include: 1. Voluntary vs. Compulsory Pooled Units: Voluntary pooled units are formed when leaseholders willingly join together, whereas compulsory pooled units may be created by statutory or regulatory requirements. 2. Horizontal vs. Vertical Pooled Units: Horizontal pooled units involve the pooling of multiple leases primarily for the development of horizontally drilled wells. Vertical pooled units, on the other hand, focus on vertical or conventional drilling. 3. Temporary vs. Permanent Pooled Units: Temporary pooled units may have a predefined period of operation, such as for the duration of a specific drilling project. Permanent pooled units, on the other hand, are established for long-term production and may remain in effect until the underlying leases expire or meet specified termination criteria. Understanding the Montana Supplemental Declaration of Pooled Unit is crucial for leaseholders, operators, and other stakeholders involved in oil and gas exploration and production in Montana. Compliance with this legally binding document ensures the efficient and fair development of oil and gas resources while safeguarding the rights and interests of the parties involved.The Montana Supplemental Declaration of Pooled Unit is a legal document specific to the state of Montana that pertains to the formation and operation of pooled units for oil and gas exploration and production. Pooled units are formed when multiple leaseholders join their interests together to collectively develop and produce oil and gas resources from a designated area. This declaration serves as a supplement to the original lease agreements and outlines the rules and regulations governing the creation and administration of the pooled unit. Key provisions included in the Montana Supplemental Declaration of Pooled Unit typically address: 1. Unit boundaries: The declaration specifies the geographical extent of the pooled unit, which is often delineated by a legal description or plat map coordinates. 2. Unit participants: It identifies the leaseholders who have voluntarily agreed to join their leases and become part of the pooled unit. Each participant's proportionate interest in the unit is also outlined. 3. Joint operations: The declaration establishes guidelines for joint operations within the pooled unit, including drilling, development, production, and other related activities. It may cover issues such as well spacing, surface use, access rights, and environmental considerations. 4. Cost allocation and revenue distribution: The document outlines how costs incurred in the development and operation of the unit will be allocated among the participants. Similarly, it addresses how the revenue generated from the sale of oil and gas produced from the unit will be distributed among the leaseholders. 5. Unit operator: The declaration designates an operator responsible for managing the pooled unit's daily operations. The operator is typically chosen based on their technical expertise and financial capabilities. It is important to note that there may be variations or different types of Montana Supplemental Declaration of Pooled Unit, depending on the specific circumstances and agreements between the parties involved. Some additional variations or categories may include: 1. Voluntary vs. Compulsory Pooled Units: Voluntary pooled units are formed when leaseholders willingly join together, whereas compulsory pooled units may be created by statutory or regulatory requirements. 2. Horizontal vs. Vertical Pooled Units: Horizontal pooled units involve the pooling of multiple leases primarily for the development of horizontally drilled wells. Vertical pooled units, on the other hand, focus on vertical or conventional drilling. 3. Temporary vs. Permanent Pooled Units: Temporary pooled units may have a predefined period of operation, such as for the duration of a specific drilling project. Permanent pooled units, on the other hand, are established for long-term production and may remain in effect until the underlying leases expire or meet specified termination criteria. Understanding the Montana Supplemental Declaration of Pooled Unit is crucial for leaseholders, operators, and other stakeholders involved in oil and gas exploration and production in Montana. Compliance with this legally binding document ensures the efficient and fair development of oil and gas resources while safeguarding the rights and interests of the parties involved.
