This form is an agreement that is used by the Parties that are the owners of working, royalty, or other oil and gas interests in the unit area subject to this Agreement. It is pursuant to the Mineral Leasing Act of February 25, 1920, as amended, 30 U.S.C. Sec. 181 et seq., authorizes Federal lessees and their representatives to unite with each other, or jointly or separately with others, in collectively adopting and operating under a unit plan of development or operations of all or any part of any oil and gas pool, field, or like area, for the purpose of more properly conserving the natural resources whenever determined and certified by the Secretary of the Interior to be necessary or advisable in the public interest.
North Dakota Exploratory Unit Agreement is a legal contract established between oil and gas companies and landowners in North Dakota. This agreement outlines the terms and conditions under which the exploration and production activities can occur in a specific geographic area, known as an exploratory unit. An Exploratory Unit refers to a defined area within which multiple formations or target reservoirs are explored and developed. The purpose of this unit is to maximize the efficiency and recovery of oil or gas resources from a particular region by combining several leasehold interests. It allows operators to explore and produce hydrocarbons from multiple formations within the unit boundaries. There are several types of North Dakota Exploratory Unit Agreements, including: 1. Voluntary Unit Agreement: This type of agreement occurs when all working interest owners within a designated area voluntarily agree to pool their interests in exploration and production purposes. It requires the consent of all parties involved, who will then share the costs, risks, and revenues proportionally. 2. Compulsory Pooling Unit Agreement: In situations where a landowner or working interest owner does not consent to the voluntary pooling, the North Dakota Industrial Commission may impose a compulsory pooling unit agreement. This agreement enables non-consenting parties to be included in the unit, ensuring the efficient development of the resource. The non-consenting party will receive a share of the revenues based on their acreage contribution. 3. Commoditization Agreement: This type of agreement involves multiple leasehold interests from different leaseholders coming together to develop a common reservoir or stratum. It consolidates different leases into a single unit for the purpose of efficiently exploring and producing hydrocarbons. North Dakota Exploratory Unit Agreements are essential for harmonizing the interests of oil and gas companies and landowners, ensuring fair compensation, and promoting effective recovery of oil and gas resources. These agreements define the rights, obligations, and responsibilities of all parties involved, enabling the efficient and responsible exploration and production of hydrocarbons in North Dakota.North Dakota Exploratory Unit Agreement is a legal contract established between oil and gas companies and landowners in North Dakota. This agreement outlines the terms and conditions under which the exploration and production activities can occur in a specific geographic area, known as an exploratory unit. An Exploratory Unit refers to a defined area within which multiple formations or target reservoirs are explored and developed. The purpose of this unit is to maximize the efficiency and recovery of oil or gas resources from a particular region by combining several leasehold interests. It allows operators to explore and produce hydrocarbons from multiple formations within the unit boundaries. There are several types of North Dakota Exploratory Unit Agreements, including: 1. Voluntary Unit Agreement: This type of agreement occurs when all working interest owners within a designated area voluntarily agree to pool their interests in exploration and production purposes. It requires the consent of all parties involved, who will then share the costs, risks, and revenues proportionally. 2. Compulsory Pooling Unit Agreement: In situations where a landowner or working interest owner does not consent to the voluntary pooling, the North Dakota Industrial Commission may impose a compulsory pooling unit agreement. This agreement enables non-consenting parties to be included in the unit, ensuring the efficient development of the resource. The non-consenting party will receive a share of the revenues based on their acreage contribution. 3. Commoditization Agreement: This type of agreement involves multiple leasehold interests from different leaseholders coming together to develop a common reservoir or stratum. It consolidates different leases into a single unit for the purpose of efficiently exploring and producing hydrocarbons. North Dakota Exploratory Unit Agreements are essential for harmonizing the interests of oil and gas companies and landowners, ensuring fair compensation, and promoting effective recovery of oil and gas resources. These agreements define the rights, obligations, and responsibilities of all parties involved, enabling the efficient and responsible exploration and production of hydrocarbons in North Dakota.
