New York 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. New York Provisions That May Be Added to A Pooling Or Unit Designation When it comes to oil and gas drilling operations in New York, pooling and unit designations play a crucial role in efficient resource extraction. In order to maximize the potential of these operations, certain provisions may be added to the pooling or unit designation to ensure fair distribution of profits, minimize environmental impact, and protect the rights of all parties involved. Let's explore some of the key provisions that can be incorporated into these designations: 1. Working Interest: As a crucial aspect of pooling or unit designation, the working interest provision determines the percentage of ownership and the corresponding share of costs and revenues. Parties involved contribute to the costs based on their working interest, and profits are distributed accordingly. 2. Royalty Interest: This provision ensures that the landowner receives a certain percentage of the profits generated from the production on their property. It is a vital aspect of the pooling or unit designation that protects the rights of the landowner and provides them with a fair share of the financial gains. 3. Net Revenue Interest: This provision determines the share of profits after deducting certain expenses, such as taxes, transportation costs, and processing fees. It helps ensure that the parties involved receive their fair share of the net revenue generated from the extraction activities. 4. Pugh Clause: The Pugh clause is an essential provision that protects the rights of the landowner. It ensures that the pooling or unit designation only covers the specific formation or zone being drilled, allowing the landowner to retain their rights to other formations or zones. 5. Depth Limitations: This provision sets boundaries by specifying the depth or vertical range within which the pooling or unit designation is applicable. It helps maintain clear separation between different formations and ensures proper management of resources. 6. Operations Agreement: An operations' agreement provision outlines the responsibilities and obligations of the parties involved in the pooling or unit designation. It addresses issues such as drilling practices, environmental protection measures, and reporting requirements, ensuring smooth and responsible operations. 7. Force Mature: This provision safeguards the parties from unforeseen circumstances that could hinder or postpone operations, such as natural disasters, government regulations, or acts of war. It outlines the procedures to follow in such cases and protects the parties from any breach of contract. Different types of pooling or unit designations may have variations in these provisions based on the specific needs and objectives of the operators and landowners. It is crucial for all parties to thoroughly review and negotiate these provisions to ensure a fair and mutually beneficial agreement. Overall, New York provisions that may be added to a pooling or unit designation revolve around defining ownership interests, protecting landowner rights, outlining responsibilities, and addressing unforeseen circumstances. Through careful consideration and negotiation, these provisions create a framework for efficient and sustainable oil and gas operations in the state.

New York Provisions That May Be Added to A Pooling Or Unit Designation When it comes to oil and gas drilling operations in New York, pooling and unit designations play a crucial role in efficient resource extraction. In order to maximize the potential of these operations, certain provisions may be added to the pooling or unit designation to ensure fair distribution of profits, minimize environmental impact, and protect the rights of all parties involved. Let's explore some of the key provisions that can be incorporated into these designations: 1. Working Interest: As a crucial aspect of pooling or unit designation, the working interest provision determines the percentage of ownership and the corresponding share of costs and revenues. Parties involved contribute to the costs based on their working interest, and profits are distributed accordingly. 2. Royalty Interest: This provision ensures that the landowner receives a certain percentage of the profits generated from the production on their property. It is a vital aspect of the pooling or unit designation that protects the rights of the landowner and provides them with a fair share of the financial gains. 3. Net Revenue Interest: This provision determines the share of profits after deducting certain expenses, such as taxes, transportation costs, and processing fees. It helps ensure that the parties involved receive their fair share of the net revenue generated from the extraction activities. 4. Pugh Clause: The Pugh clause is an essential provision that protects the rights of the landowner. It ensures that the pooling or unit designation only covers the specific formation or zone being drilled, allowing the landowner to retain their rights to other formations or zones. 5. Depth Limitations: This provision sets boundaries by specifying the depth or vertical range within which the pooling or unit designation is applicable. It helps maintain clear separation between different formations and ensures proper management of resources. 6. Operations Agreement: An operations' agreement provision outlines the responsibilities and obligations of the parties involved in the pooling or unit designation. It addresses issues such as drilling practices, environmental protection measures, and reporting requirements, ensuring smooth and responsible operations. 7. Force Mature: This provision safeguards the parties from unforeseen circumstances that could hinder or postpone operations, such as natural disasters, government regulations, or acts of war. It outlines the procedures to follow in such cases and protects the parties from any breach of contract. Different types of pooling or unit designations may have variations in these provisions based on the specific needs and objectives of the operators and landowners. It is crucial for all parties to thoroughly review and negotiate these provisions to ensure a fair and mutually beneficial agreement. Overall, New York provisions that may be added to a pooling or unit designation revolve around defining ownership interests, protecting landowner rights, outlining responsibilities, and addressing unforeseen circumstances. Through careful consideration and negotiation, these provisions create a framework for efficient and sustainable oil and gas operations in the state.