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.
A Texas Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, with Depth Limitation is a legal document that governs the exploration and production of oil, gas, or mineral resources in the state of Texas. This agreement is specifically designed to allow multiple landowners or royalty owners to combine their properties into a single drilling unit, maximizing the efficiency and profitability of resource extraction operations. The purpose of a Texas Pooling Agreement is to prevent wasteful or overlapping drilling activities by consolidating the rights and interests of multiple tracts of land or royalty owners. It provides a framework for the pooling of interests, specifically between the lessee (company or individual holding the lease to explore and produce oil, gas, or minerals) and the royalty owners (individuals or entities who own the mineral rights). One key feature of this type of pooling agreement is the depth limitation, which means that the pooling activities are confined to a specific depth or geological formation. This depth limitation ensures that the pooling operations do not interfere with existing or potential future drilling operations in different formations. Some relevant keywords associated with a Texas Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, With Depth Limitation would include: 1. Texas pooling agreement 2. Lessee 3. Royalty owners 4. Two tracts 5. Depth limitation 6. Oil and gas extraction 7. Mineral resources 8. Drilling unit 9. Consolidation of interests 10. Wasteful drilling prevention 11. Resource extraction efficiency 12. Geological formation restriction 13. Overlapping operations avoidance 14. Lease agreement 15. Pooling activities. Different types or variations of this pooling agreement may exist based on specific depth limitations, geological formations, or the number of tracts involved. It is crucial for both lessees and royalty owners to carefully review and negotiate the terms and conditions of the agreement to protect their rights and interests effectively.
