Ohio Dissolution of Pooled Unit (By Unit Owners)
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FAQ
Unitization is a process in which two or more operating companies combine their interests in a single unitized area, allowing them to operate their wells together. Texas' standards include determining the boundaries of the unitized area and how production will be divided amongst the participating companies.
Unitisation enables the exploitation, as a single unit, of Oil and Gas deposits in fields/reservoirs straddling two or more parties' mutual concession boundaries, under a single authority notwithstanding the respective permits or contract areas different contractual terms.
Unitization is the act of consolidating multiple smaller units into a larger unit for improved warehouse efficiency, quicker packaging and arranging, and more efficient handling and transportation.
The goal of unitisation is to ensure that different block owners sharing a common accumulation develop the field as a single unit. Licence holders sharing a common field will enter into a unitisation agreement, which will firstly establish the percentage interests in the unit.
Pooling is ?the bringing together of small tracts sufficient for the granting of a well permit under applicable spacing rules,? while unitization is ?the joint operation of all or some portion of a producing reservoir.?[1] While pooling and unitization are both used to prevent waste and protect correlative rights,[2] ...