This form of declaration provides notice that the unit owner pools, unitizes, and combines the Unit Leases, including all renewals, extensions, ratifications, and amendments of the Unit Leases and the lands covered by those Leases and the mineral and/or royalty estates in the lands subject to the Leases into a unit for the exploration, development, and production of oil, gas, and associated hydrocarbons (the Unit ).
The Montana Declaration of Pooled Unit — Long Form is a legal document used in the state of Montana to establish and govern the formation of a pooled unit. A pooled unit refers to a consolidated group of oil or gas leases or tracts that are combined for the purpose of efficient exploration, drilling, and production. This long-form declaration provides a comprehensive framework and set of guidelines for the creation and administration of a pooled unit in Montana. It outlines the specific terms, conditions, and requirements that govern the unit, ensuring fair and equitable distribution of production revenues among the various leaseholders. Some key elements covered in the Montana Declaration of Pooled Unit — Long Form may include: 1. Objective and Purpose: This section highlights the specific objectives and purposes of forming the pooled unit, such as optimizing production efficiency, minimizing waste, and enhancing the recovery of oil and gas resources. 2. Identification of Tracts: It identifies the individual leases or tracts that will be included in the pooled unit. This section typically specifies their respective legal descriptions, acreage, and ownership details. 3. Unit Area: The declaration defines the geographical boundaries within which the pooled unit will operate, specifying the townships, ranges, and sections involved. 4. Voting and Decision-Making: It establishes the voting rights and decision-making process for the unit, specifying the percentage of interest or acreage required for a leaseholder to exercise voting rights and participate in decisions regarding drilling, production, and lease operations. 5. Unit Operator: This section designates the entity or individual responsible for operating and managing the pooled unit. The responsibilities, rights, and obligations of the unit operator are typically outlined here. 6. Unit Operations: It outlines the various activities that can be conducted within the pooled unit, such as exploration, drilling, production, maintenance, and plugging and abandonment of wells. 7. Allocation of Revenues and Costs: The declaration explains how revenues generated from production within the pooled unit will be allocated among the leaseholders, taking into consideration factors like acreage, well productivity, operating costs, and royalty rates. 8. Duration and Termination: It sets forth the duration of the pooled unit and the circumstances under which it may be terminated, such as non-compliance with the terms of the declaration, expiration of leases, or voluntary withdrawal of a leaseholder. It is essential to note that the Montana Declaration of Pooled Unit — Long Form can vary slightly between different oil and gas fields or operators. However, the fundamental objective remains the same; to streamline operations and enhance the extraction and recovery of oil and gas resources from multiple leases or tracts in a fair and efficient manner. Additional variations of the Montana Declaration of Pooled Unit may include the Short Form, which outlines the basic terms and conditions in a concise format, and the Model Form, which provides a standardized template developed by regulatory bodies or industry associations.The Montana Declaration of Pooled Unit — Long Form is a legal document used in the state of Montana to establish and govern the formation of a pooled unit. A pooled unit refers to a consolidated group of oil or gas leases or tracts that are combined for the purpose of efficient exploration, drilling, and production. This long-form declaration provides a comprehensive framework and set of guidelines for the creation and administration of a pooled unit in Montana. It outlines the specific terms, conditions, and requirements that govern the unit, ensuring fair and equitable distribution of production revenues among the various leaseholders. Some key elements covered in the Montana Declaration of Pooled Unit — Long Form may include: 1. Objective and Purpose: This section highlights the specific objectives and purposes of forming the pooled unit, such as optimizing production efficiency, minimizing waste, and enhancing the recovery of oil and gas resources. 2. Identification of Tracts: It identifies the individual leases or tracts that will be included in the pooled unit. This section typically specifies their respective legal descriptions, acreage, and ownership details. 3. Unit Area: The declaration defines the geographical boundaries within which the pooled unit will operate, specifying the townships, ranges, and sections involved. 4. Voting and Decision-Making: It establishes the voting rights and decision-making process for the unit, specifying the percentage of interest or acreage required for a leaseholder to exercise voting rights and participate in decisions regarding drilling, production, and lease operations. 5. Unit Operator: This section designates the entity or individual responsible for operating and managing the pooled unit. The responsibilities, rights, and obligations of the unit operator are typically outlined here. 6. Unit Operations: It outlines the various activities that can be conducted within the pooled unit, such as exploration, drilling, production, maintenance, and plugging and abandonment of wells. 7. Allocation of Revenues and Costs: The declaration explains how revenues generated from production within the pooled unit will be allocated among the leaseholders, taking into consideration factors like acreage, well productivity, operating costs, and royalty rates. 8. Duration and Termination: It sets forth the duration of the pooled unit and the circumstances under which it may be terminated, such as non-compliance with the terms of the declaration, expiration of leases, or voluntary withdrawal of a leaseholder. It is essential to note that the Montana Declaration of Pooled Unit — Long Form can vary slightly between different oil and gas fields or operators. However, the fundamental objective remains the same; to streamline operations and enhance the extraction and recovery of oil and gas resources from multiple leases or tracts in a fair and efficient manner. Additional variations of the Montana Declaration of Pooled Unit may include the Short Form, which outlines the basic terms and conditions in a concise format, and the Model Form, which provides a standardized template developed by regulatory bodies or industry associations.
