In the interest of the public welfare and to promote conversation and increase the ultimate recovery of oil, gas, and associated minerals from the Unit and to protect the rights of the owners of interest in the lands included in the Unit, it is deemed necessary and desirable to enter into this Agreement, in conformity with (Applicable Statutory reference), to unitize the Oil and Gas Rights in and to the Unitized Formation in order to conduct a secondary recovery, pressure maintenance, or other recovery program as provided for in this Agreement.
The Ohio Unit Agreement is a legal document that outlines the terms and conditions for the development and operation of an unitized oil and gas field in the state of Ohio. An unitized field refers to a situation where multiple landowners within a specified geographic area agree to jointly develop and produce the oil and gas resources located beneath their properties. This agreement is essential to ensure the efficient and effective extraction of the hydrocarbon reserves in a cooperative manner, while also protecting the rights and interests of all parties involved. The Ohio Unit Agreement typically addresses several key aspects, including the establishment of a unit area, allocation of costs and revenues, sharing of production, and regulatory compliance. There are two main types of Ohio Unit Agreements: 1. Voluntary Unit Agreement: This type of agreement is entered into voluntarily by the landowners within the proposed unit area. It requires the consent and participation of all the affected parties and establishes the framework for joint operations and sharing of costs and revenues. 2. Compulsory Unit Agreement: In the case where some landowners within the proposed unit area do not voluntarily agree to participate in the unitization, a compulsory unit agreement can be sought. This agreement is obtained through a formal hearing process with the Ohio Oil and Gas Commission, which has the authority to order unitization if it deems it to be in the best interest of the conservation and development of the oil and gas resources. The Ohio Unit Agreement plays a crucial role in promoting the efficient exploitation of oil and gas resources by enabling coordinated operations, avoiding waste, and ensuring fair distribution of financial benefits. It is a legally binding contract that provides a comprehensive framework for the cooperative development and long-term management of unitized oil and gas fields in Ohio.
