Harris Texas Production and Storage Unit Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• County: Harris
• 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. Harris Texas Production and Storage Unit Agreement is a legally binding contract that establishes rules and regulations for the production and storage of oil and gas resources in Harris County, Texas. This agreement outlines the rights and responsibilities of all parties involved, including producers, operators, and landowners. The main objective of the Harris Texas Production and Storage Unit Agreement is to promote efficient and responsible exploration and extraction of hydrocarbon reserves. It ensures that all activities are conducted in compliance with industry standards, environmental regulations, and landowner requirements. Key terms and components covered in the Harris Texas Production and Storage Unit Agreement may include: 1. Unit Formation: This section defines the boundaries of the production and storage unit and specifies the area eligible for development. It also determines the allocation of production rights. 2. Working Interests and Royalties: The agreement outlines the ownership interests of different parties involved in the unit. Working interests represent the ownership share in production and operating costs, while royalties refer to the share of production revenue paid to the landowner or mineral rights' owner. 3. Operations: This section outlines the procedures for drilling, producing, and maintaining wells within the unit. It defines the roles and responsibilities of operators and establishes guidelines for well spacing, drilling depth, and production techniques. 4. Unit Operations Committee: This committee comprises representatives from the working interest owners and is responsible for overseeing the operations within the unit. They decide on matters such as production rates, capital expenditures, and reservoir management. 5. Plugging and Abandonment: The agreement provides guidelines for the proper abandonment of wells and the restoration of the land after the cessation of production activities. It ensures that wells are safely decommissioned to prevent environmental harm. 6. Sharing of Costs and Revenues: The Harris Texas Production and Storage Unit Agreement includes provisions on cost-sharing among working interest owners for drilling, development, and operating expenses. It also defines how production revenues are distributed among stakeholders. In addition to the general provisions, there may be different types or variations of the Harris Texas Production and Storage Unit Agreement, depending on specific circumstances or project requirements. These could include agreements tailored for offshore production, gas storage facilities, or enhanced oil recovery projects. Each type of agreement would address specific technical, environmental, and fiscal considerations relevant to the particular type of operation.

Harris Texas Production and Storage Unit Agreement is a legally binding contract that establishes rules and regulations for the production and storage of oil and gas resources in Harris County, Texas. This agreement outlines the rights and responsibilities of all parties involved, including producers, operators, and landowners. The main objective of the Harris Texas Production and Storage Unit Agreement is to promote efficient and responsible exploration and extraction of hydrocarbon reserves. It ensures that all activities are conducted in compliance with industry standards, environmental regulations, and landowner requirements. Key terms and components covered in the Harris Texas Production and Storage Unit Agreement may include: 1. Unit Formation: This section defines the boundaries of the production and storage unit and specifies the area eligible for development. It also determines the allocation of production rights. 2. Working Interests and Royalties: The agreement outlines the ownership interests of different parties involved in the unit. Working interests represent the ownership share in production and operating costs, while royalties refer to the share of production revenue paid to the landowner or mineral rights' owner. 3. Operations: This section outlines the procedures for drilling, producing, and maintaining wells within the unit. It defines the roles and responsibilities of operators and establishes guidelines for well spacing, drilling depth, and production techniques. 4. Unit Operations Committee: This committee comprises representatives from the working interest owners and is responsible for overseeing the operations within the unit. They decide on matters such as production rates, capital expenditures, and reservoir management. 5. Plugging and Abandonment: The agreement provides guidelines for the proper abandonment of wells and the restoration of the land after the cessation of production activities. It ensures that wells are safely decommissioned to prevent environmental harm. 6. Sharing of Costs and Revenues: The Harris Texas Production and Storage Unit Agreement includes provisions on cost-sharing among working interest owners for drilling, development, and operating expenses. It also defines how production revenues are distributed among stakeholders. In addition to the general provisions, there may be different types or variations of the Harris Texas Production and Storage Unit Agreement, depending on specific circumstances or project requirements. These could include agreements tailored for offshore production, gas storage facilities, or enhanced oil recovery projects. Each type of agreement would address specific technical, environmental, and fiscal considerations relevant to the particular type of operation.