This form is used when royalty owners are the owners of royalty and mineral interests in Tracts 1 and 2, subject to the terms of Lease 1 and Lease 2. Recognizing that each of the Royalty Owners may not own an Interest in both Tracts 1 and 2, or may not own an identical Interest in Tracts 1 and 2, it is their desire, together with Lessee, to pool and unitize these two Tracts for oil and gas operations.
South Dakota Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, With Depth Limitation A South Dakota Pooling Agreement between Lessee and Royalty Owners is a legally binding contract that allows for the efficient development and extraction of oil and gas resources from two designated tracts of land in South Dakota. This agreement enables multiple parties, including the Lessee (typically an oil and gas company) and various Royalty Owners (individuals or entities who own mineral rights), to pool their interests and work together to maximize extraction efficiency and economic returns. The main objective of this pooling agreement is to consolidate the ownership and operational rights of adjacent tracts, thus avoiding fragmented and inefficient individual operations. By pooling their interests, the Lessee and Royalty Owners collectively benefit from shared resources, costs, and profits related to oil and gas exploration and production. Depth limitation is an essential component of this South Dakota pooling agreement. It refers to the specific depth or geological formation to which the pooling and extraction activities are limited. This serves as a protective measure to ensure that the drilling and production operations do not extend beyond the specified depth, thereby preventing interference with other potential drilling activities in deeper formations. The depth limitation is crucial for maintaining optimal resource exploitation and operational harmony among multiple lessees and royalty owners within the same or adjacent regions. By delineating the permissible depth, the pooling agreement establishes clear boundaries and helps avoid conflicts or claims related to overlapping drilling activities. Different types of South Dakota pooling agreements may vary based on specific terms and conditions. These agreements can include provisions addressing factors such as royalty calculations, revenue distribution, operational responsibilities, and environmental considerations. Each pooling agreement is customarily tailored to the unique circumstances and requirements of the participating parties and the specific location of the two tracts. In conclusion, a South Dakota Pooling Agreement between Lessee and Royalty Owners on Two Tracts, With Depth Limitation, allows for collaborative and efficient development of oil and gas resources. By pooling their interests and establishing a depth limitation, all parties involved can collectively benefit from increased operational efficiency, reduced costs, and optimized resource extraction.
