New Mexico Production and Storage Unit Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1092
• Format: Word; Rich Text

Description

This form of Agreement may be used to create a Unit for the purposes of producing oil and gas on a pooled unit basis, from existing producing leases. New Mexico Production and Storage Unit Agreement (NMP&SUA) is a legal contract that governs the production and storage of oil and gas resources in the state of New Mexico, United States. This agreement is designed to ensure fair distribution of resources and provide a framework for cooperation among parties involved in the extraction and storage process. The NMP&SUA outlines the terms and conditions by which oil and gas operators can share a common reservoir, pooling their resources and efforts to maximize efficiency and minimize waste. It establishes the boundaries of the production and storage unit, defines the participating interests, and allocates production rights and storage capacities to each party involved. There are various types of New Mexico Production and Storage Unit Agreements, including: 1. Conventional Unit Agreements: These agreements typically cover the conventional oil and gas reservoirs, where extraction is carried out using traditional drilling methods. 2. Shale Unit Agreements: This type of agreement is specific to shale formations, which require unconventional extraction techniques such as hydraulic fracturing (fracking) to release the trapped hydrocarbons. 3. Enhanced Recovery Unit Agreements: These agreements focus on reservoirs that have already been partially depleted and require enhanced recovery methods to extract remaining oil and gas reserves. 4. Carbon Capture and Storage Unit Agreements: With increased emphasis on reducing greenhouse gas emissions, these agreements are designed to govern the capture and storage of carbon dioxide emitted during production, preventing it from entering the atmosphere. The NMP&SUA also addresses crucial aspects such as accounting procedures, cost-sharing mechanisms, and dispute resolution processes. Compliance with state regulations, environmental protection guidelines, and safety standards are essential components of any New Mexico Production and Storage Unit Agreement. Furthermore, these agreements may include provisions for royalty payments, lease terms, and conservation measures to ensure the responsible and sustainable development of New Mexico's oil and gas resources.

New Mexico Production and Storage Unit Agreement (NMP&SUA) is a legal contract that governs the production and storage of oil and gas resources in the state of New Mexico, United States. This agreement is designed to ensure fair distribution of resources and provide a framework for cooperation among parties involved in the extraction and storage process. The NMP&SUA outlines the terms and conditions by which oil and gas operators can share a common reservoir, pooling their resources and efforts to maximize efficiency and minimize waste. It establishes the boundaries of the production and storage unit, defines the participating interests, and allocates production rights and storage capacities to each party involved. There are various types of New Mexico Production and Storage Unit Agreements, including: 1. Conventional Unit Agreements: These agreements typically cover the conventional oil and gas reservoirs, where extraction is carried out using traditional drilling methods. 2. Shale Unit Agreements: This type of agreement is specific to shale formations, which require unconventional extraction techniques such as hydraulic fracturing (fracking) to release the trapped hydrocarbons. 3. Enhanced Recovery Unit Agreements: These agreements focus on reservoirs that have already been partially depleted and require enhanced recovery methods to extract remaining oil and gas reserves. 4. Carbon Capture and Storage Unit Agreements: With increased emphasis on reducing greenhouse gas emissions, these agreements are designed to govern the capture and storage of carbon dioxide emitted during production, preventing it from entering the atmosphere. The NMP&SUA also addresses crucial aspects such as accounting procedures, cost-sharing mechanisms, and dispute resolution processes. Compliance with state regulations, environmental protection guidelines, and safety standards are essential components of any New Mexico Production and Storage Unit Agreement. Furthermore, these agreements may include provisions for royalty payments, lease terms, and conservation measures to ensure the responsible and sustainable development of New Mexico's oil and gas resources.