North Dakota Provisions That May Be Added to A Pooling Or Unit Designation

• Category: Oil Gas and Minerals - Pooling and Unitization
• State: Multi-State
• Control #: US-OG-369
• Format: Word; Rich Text

Description

This provision document contains termination, signature, and depth provisions which may be added to a pooling or unit designation.

North Dakota Provisions That May Be Added to A Pooling Or Unit Designation In North Dakota, pooling and unit designation play a crucial role in the oil and gas industry. Pooling allows multiple mineral owners within a specific area to combine their interests into a single unit for efficient resource extraction, while unit designation establishes the boundaries and governing regulations for such units. The state of North Dakota has various provisions that can be added to a pooling or unit designation, each serving a specific purpose. Here are some key types of provisions commonly included: 1. Spacing Provisions: Spacing provisions determine the distance between wells and the optimal arrangement within a pooling or unit designation. These provisions ensure that oil and gas wells are situated at proper intervals to maximize recovery while preventing interference between wells. 2. Royalty Provisions: Royalty provisions outline the percentage of revenues generated from oil and gas production that will be paid to mineral rights owners. North Dakota allows for flexible royalty rates, which are negotiated and agreed upon during the pooling process, ensuring a fair distribution of earnings. 3. Participating Area Provisions: Participating area provisions define the boundaries within which a mineral owner's acreage will contribute to the shared production. These provisions help determine the proportionate share of costs and revenues for each participant within the pooling or unit designation. 4. Non-Participating Area Provisions: Non-participating area provisions establish the boundaries where a mineral owner has chosen not to participate in the pooling or unit designation. Such owners receive royalties based on production from their acreage, without sharing costs or liabilities. 5. Extension or Renewal Provisions: Extension or renewal provisions dictate the duration and conditions under which a pooling or unit designation can be extended or renewed. This allows for flexibility in maintaining and optimizing production over an extended period. 6. Surface Use Provisions: Surface use provisions address the guidelines and restrictions for surface activities occurring within the pooling or unit designation, such as drilling, infrastructure development, access roads, and reclamation requirements. These provisions ensure minimal impact on the environment and landowners. 7. Confidentiality Provisions: Confidentiality provisions protect sensitive information related to production, financial agreements, or technical data shared among the parties involved in the pooling or unit designation. These provisions uphold the privacy and security of proprietary information. 8. Operations and Reporting Provisions: Operations and reporting provisions outline the obligations of operators within the pooling or unit designation. They include requirements for regular reporting, monitoring, and compliance with state regulations to ensure safe and responsible operations. These provisions work together to create a comprehensive framework for effective pooling and unit designation in North Dakota's oil and gas industry. They aim to balance the interests of mineral owners, operators, and the state, promoting responsible resource development while safeguarding environmental and landowner rights. Understanding and adhering to these provisions is essential for successful and sustainable oil and gas operations in North Dakota.