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 Virginia Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, With Depth Limitation is a legally binding document that outlines the terms and conditions for combining multiple tracts of land in the state of Virginia for oil and gas exploration and production purposes. This agreement allows the lessee, typically an oil and gas company, to pool the mineral interests of multiple property owners, referred to as royalty owners, in order to efficiently and effectively develop and extract resources. This pooling agreement is specifically designed for situations where there are two tracts of land involved. It ensures that both tracts are treated as a single unit for the purposes of drilling and producing oil and gas, rather than treating them as separate entities. By consolidating the tracts into a single unit, the lessee can optimize production and minimize costs associated with drilling and equipment setup. One key aspect of this agreement is the depth limitation. It specifies the depth at which the pooling of the tracts is applicable. This means that the pooling agreement may only be valid for a certain depth range, and any drilling or extraction activities beyond this depth would require separate agreements or negotiations. Keywords related to this topic may include: 1. Virginia Pooling Agreement 2. Lessee 3. Royalty Owners 4. Two Tracts 5. Depth Limitation 6. Oil and Gas Exploration 7. Production purposes 8. Mineral Interests 9. Oil and Gas Company 10. Property Owners 11. Consolidation of Tracts 12. Production Optimization 13. Cost Reduction 14. Drilling and Equipment Setup 15. Valid Depth Range.
