This form is an agreement that is used by the Parties that are the owners of working, royalty, or other oil and gas interests in the unit area subject to this Agreement. It is pursuant to the Mineral Leasing Act of February 25, 1920, as amended, 30 U.S.C. Sec. 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 under a unit plan of development or operations of all or any part of any oil and gas pool, field, or like area, for the purpose of more properly conserving the natural resources whenever determined and certified by the Secretary of the Interior to be necessary or advisable in the public interest.
The Oklahoma Exploratory Unit Agreement is a legal contract that allows multiple parties to jointly explore and develop oil and gas properties in the state of Oklahoma. It is specifically designed to encourage cooperation and minimize conflicts among operators who share common interests in a particular oil or gas reservoir. This agreement typically includes provisions that define the area of mutual interest (AMI) within which exploration and development activities can take place. It helps streamline operations by consolidating acreage and prevents wasteful duplication of efforts. The AMI can be a single lease, multiple leases, or even an entire oil and gas field. Key terms within the agreement include the unitization of interests, meaning that the participating parties pool their ownership rights and collectively develop the resources. The agreement establishes a working interest, whereby each party contributes funds and resources for exploration and production activities proportionate to their allocated percentage. There are various types of Oklahoma Exploratory Unit Agreements, depending on the scope and purpose of the agreement. Some include: 1. Area of Mutual Interest (AMI) Agreement: This is a basic agreement that defines the geographical boundaries within which exploration activities can be conducted among the participating parties. 2. Drilling Unit Agreement: This agreement specifically focuses on the drilling and development aspects of the exploration. It outlines the drilling unit size, well spacing, and other technical details related to drilling operations. 3. Production Unit Agreement: This agreement deals with the unitization of the production from the reservoir. It outlines how the produced oil and gas will be allocated and distributed among the participating parties based on their ownership interests. 4. Supplemental Agreement: This is an additional agreement that may be attached to the main Exploratory Unit Agreement to address any specific issues or modifications required during the course of exploration and development activities. It allows for flexibility and adjustments as the project evolves. Overall, the Oklahoma Exploratory Unit Agreement plays a vital role in promoting collaborative efforts and efficient development of oil and gas resources in the state. It ensures fair participation, reduces costs, and maximizes the potential for successful exploration and production in Oklahoma's energy industry.
