Wyoming Production and Storage Unit Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1092
• Format: Word; Rich Text

Description

This form of Agreement may be used to create a Unit for the purposes of producing oil and gas on a pooled unit basis, from existing producing leases.

Wyoming Production and Storage Unit Agreement (WP SUA) is a legal document that outlines the terms and conditions between parties involved in the production and storage of oil, gas, or mineral resources in the state of Wyoming, United States. This agreement is designed to regulate and govern the coordination of operations, production, and storage activities, ensuring efficient resource management and fair distribution of revenues among stakeholders. Key aspects covered in a Wyoming Production and Storage Unit Agreement typically include: 1. Parties: The agreement specifies the parties involved, which may include the oil or gas operator, working interest owners, leaseholders, royalty owners, and other stakeholders. 2. Unit Area: The agreement defines the geographical scope of the production and storage unit, comprising specific lands or wells where the resources are extracted and stored. It may encompass multiple leases or tracts. 3. Resource Allocation: The WP SUA specifies how the extracted resources will be allocated among the parties, based on their respective ownership rights, working interests, or royalty interests. 4. Storage Facilities: If applicable, the agreement outlines the provisions for storage facilities, such as underground reservoirs or tanks, including their location, capacity, and management responsibilities. 5. Operations and Maintenance: It covers the responsibilities and obligations of each party regarding the operation, maintenance, and inspection of wells, pipelines, equipment, and other related infrastructure within the unit. 6. Production and Payment Obligations: The agreement establishes rules for production requirements, including minimum and maximum levels, and outlines the procedures for verifying and auditing production volumes. It also elucidates the payment mechanisms, such as revenue sharing, allocation of costs, and other financial terms. 7. Reporting and Auditing: The WP SUA may necessitate regular reporting and auditing obligations to ensure transparency, accuracy, and accountability among participating parties. Different types or variations of Wyoming Production and Storage Unit Agreements may exist depending on the specific nature of the resources being produced or stored. For instance, there could be separate agreements for oil production, gas production, or mineral production, each catering to the specific requirements and regulations governing these resources. In conclusion, Wyoming Production and Storage Unit Agreements are essential legal instruments that facilitate the orderly and cooperative management of resource extraction and storage activities in Wyoming. They provide a framework for fair distribution of revenues, resource allocation, and operational coordination among the parties involved.