This Agreement is entered into, between the parties subscribing, ratifying, or consenting to it. The Parties are the owners of working, royalty, or other oil and gas interests in the Unit Area subject to this Agreement.
The Mineral Leasing Act of February 25, 1920, 41 Stat. 437, as amended, 30 U.S.C., Secs. 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 a cooperative or unit plan of development or operation of all or any part of any oil or gas pool, field, or like area, for the purposes of more properly conserving the natural resources whenever determined and certified by the Secretary of the Interior of the United States, to be necessary or advisable in the public interest.
Nebraska Unit Agreement and Plan of Unitization is a legal framework and a crucial part of the oil and gas industry in Nebraska. It serves as an agreement between different operators or working interest owners to consolidate and streamline operations in a particular drilling area. This comprehensive plan ensures efficient and economical production from reservoirs that may span multiple leases. The Nebraska Unit Agreement and Plan of Unitization allows the pooling of mineral interests, creating a unified unit within which operators collectively exploit the hydrocarbon reserves. It brings together the various working interest owners, including leaseholders, royalty owners, and oil and gas companies, ensuring the development of the unit is conducted in a coordinated manner. This agreement establishes regulations and guidelines regarding the development, production, and operations within the unit. It ensures the equitable sharing of costs, revenues, and resources among the participating parties. Additionally, the Nebraska Unit Agreement and Plan of Unitization addresses issues such as well spacing, drilling and completion techniques, production quotas, environmental regulations, and the overall management of the unit. There are several types of Nebraska Unit Agreement and Plan of Unitization, each tailored to specific situations and objectives. Some common types include: 1. Field-Wide Unitization: This type of agreement combines various leases and working interest owners within an entire field or reservoir. It aims to maximize recovery rates and minimize waste by integrating operations across a larger area. 2. Wellbore-Only Unitization: In this scenario, the agreement focuses solely on the jointly operated well bore and the corresponding production. This type of unitization is often done when multiple wells are accessing the same reservoir or formation. 3. Lease-Line Unitization: Lease-line unitization occurs when a boundary separating two or more leases is crossed by a well bore. This type of agreement ensures the efficient extraction of reserves extending beyond lease boundaries. 4. Secondary Recovery Unitization: This type of unitization is employed when enhanced recovery techniques, such as water flooding or carbon dioxide injection, are used to extract additional hydrocarbons from the reservoir. It allows for the coordinated implementation of these techniques involving multiple working interests. Overall, the Nebraska Unit Agreement and Plan of Unitization is a vital instrument in the oil and gas industry, promoting cooperation and efficiency among operators in the development of hydrocarbon resources.
