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.
Lima Arizona Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, With Depth Limitation is a legal contract that outlines the terms and conditions for pooling resources between the lessee (the entity leasing the mineral rights) and royalty owners (individuals or entities owning a share of the mineral rights) in Lima, Arizona. This agreement aims to maximize the efficiency of extracting mineral resources while ensuring fair compensation and environmental sustainability. The Lima Arizona Pooling Agreement allows the lessee to combine the acreage from two tracts, subject to a depth limitation, to form a single drilling unit. This pooling arrangement is beneficial for all parties involved as it reduces redundancies in drilling operations, minimizes surface disturbance, and potentially increases the overall recovery of resources. Key provisions and terms within the Lima Arizona Pooling Agreement may include: 1. Scope and Purpose: This section defines the purpose of the agreement, which is to facilitate the pooling of resources to optimize exploration, extraction, and production activities. It outlines the specific tracts that are subject to pooling and the depth limitation that restricts drilling operations to a certain depth range. 2. Interests and Participation: This section outlines the rights and responsibilities of both the lessee and royalty owners. It specifies the ownership percentages of each party in the pooled unit and any associated obligations or liabilities. 3. Operations and Development: This part details the actions and procedures concerning the exploration, drilling, and extraction of resources within the pooling unit. It establishes the steps for obtaining necessary permits, regulations for the use of equipment and facilities, and outlines safety and environmental standards that must be adhered to. 4. Compensation and Royalties: This section governs the allocation of royalties and other financial considerations to the royalty owners. It specifies the percentage of royalties each owner is entitled to receive based on their respective ownership stake and the prevailing market rates for the extracted resources. 5. Duration and Termination: This part outlines the duration of the pooling agreement and the conditions under which it may be terminated. It may include provisions allowing for extensions or revisions of the agreement based on changes in technology, market conditions, or legal requirements. Different variations or types of Lima Arizona Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, With Depth Limitation may exist based on specific circumstances, such as variations in the depth limitation, number of tracts involved, or other site-specific conditions. However, the fundamental purpose and structure of the agreement generally remain the same.Lima Arizona Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, With Depth Limitation is a legal contract that outlines the terms and conditions for pooling resources between the lessee (the entity leasing the mineral rights) and royalty owners (individuals or entities owning a share of the mineral rights) in Lima, Arizona. This agreement aims to maximize the efficiency of extracting mineral resources while ensuring fair compensation and environmental sustainability. The Lima Arizona Pooling Agreement allows the lessee to combine the acreage from two tracts, subject to a depth limitation, to form a single drilling unit. This pooling arrangement is beneficial for all parties involved as it reduces redundancies in drilling operations, minimizes surface disturbance, and potentially increases the overall recovery of resources. Key provisions and terms within the Lima Arizona Pooling Agreement may include: 1. Scope and Purpose: This section defines the purpose of the agreement, which is to facilitate the pooling of resources to optimize exploration, extraction, and production activities. It outlines the specific tracts that are subject to pooling and the depth limitation that restricts drilling operations to a certain depth range. 2. Interests and Participation: This section outlines the rights and responsibilities of both the lessee and royalty owners. It specifies the ownership percentages of each party in the pooled unit and any associated obligations or liabilities. 3. Operations and Development: This part details the actions and procedures concerning the exploration, drilling, and extraction of resources within the pooling unit. It establishes the steps for obtaining necessary permits, regulations for the use of equipment and facilities, and outlines safety and environmental standards that must be adhered to. 4. Compensation and Royalties: This section governs the allocation of royalties and other financial considerations to the royalty owners. It specifies the percentage of royalties each owner is entitled to receive based on their respective ownership stake and the prevailing market rates for the extracted resources. 5. Duration and Termination: This part outlines the duration of the pooling agreement and the conditions under which it may be terminated. It may include provisions allowing for extensions or revisions of the agreement based on changes in technology, market conditions, or legal requirements. Different variations or types of Lima Arizona Pooling Agreement Between Lessee and Royalty Owners on Two Tracts, With Depth Limitation may exist based on specific circumstances, such as variations in the depth limitation, number of tracts involved, or other site-specific conditions. However, the fundamental purpose and structure of the agreement generally remain the same.
