Contra Costa California Provisions That May Be Added to A Pooling Or Unit Designation

• Category: Oil Gas and Minerals - Pooling and Unitization
• State: Multi-State
• County: Contra Costa
• Control #: US-OG-369
• Format: Word; Rich Text

Description

This provision document contains termination, signature, and depth provisions which may be added to a pooling or unit designation. Contra Costa County is located in the state of California and is well-known for its abundant natural resources, including oil and gas reserves. In order to effectively extract these resources, there are specific provisions that may be added to a pooling or unit designation. One type of provision that may be added to a pooling or unit designation in Contra Costa County is the "Area of Mutual Interest" provision. This provision allows for the mutual exploration and development of oil and gas reserves within a designated geographical area. This means that multiple operators can work together and share resources, knowledge, and costs to maximize the efficiency and productivity of the extraction process. Another provision that may be added is the "Force Mature" clause. This clause is included to protect operators in case of unforeseen circumstances that may prevent or delay the extraction process, such as natural disasters, emergencies, or regulatory changes. It allows for flexibility in the pooling or unit designation agreements, ensuring that the interests of all parties involved are taken into consideration. Furthermore, a "Development Obligation" provision can be added to a pooling or unit designation in Contra Costa County. This provision outlines the specific obligations and responsibilities of each operator involved in the extraction process. It may include requirements for drilling and completion of wells within a certain timeframe, maintaining the equipment and infrastructure, as well as adhering to environmental and safety regulations. Additionally, a provision often seen in Contra Costa County's pooling or unit designations is the "Royalty Sharing" provision. This provision determines how the proceeds from the sale of extracted resources are distributed among the operators involved. It outlines the percentage or fraction of the royalties that each operator is entitled to, ensuring a fair and transparent distribution of profits. Lastly, the "Termination" provision is important in Contra Costa County's pooling or unit designations. It specifies the conditions under which the pooling or unit designation agreement may be terminated, such as non-compliance with the terms of the agreement, bankruptcy of one of the operators, or changes in ownership. In summary, Contra Costa County in California requires specific provisions to be added to pooling or unit designation agreements to effectively extract its oil and gas resources. These may include provisions such as the Area of Mutual Interest, Force Mature, Development Obligation, Royalty Sharing, and Termination provisions, ensuring efficient and fair operations within the county.

Contra Costa County is located in the state of California and is well-known for its abundant natural resources, including oil and gas reserves. In order to effectively extract these resources, there are specific provisions that may be added to a pooling or unit designation. One type of provision that may be added to a pooling or unit designation in Contra Costa County is the "Area of Mutual Interest" provision. This provision allows for the mutual exploration and development of oil and gas reserves within a designated geographical area. This means that multiple operators can work together and share resources, knowledge, and costs to maximize the efficiency and productivity of the extraction process. Another provision that may be added is the "Force Mature" clause. This clause is included to protect operators in case of unforeseen circumstances that may prevent or delay the extraction process, such as natural disasters, emergencies, or regulatory changes. It allows for flexibility in the pooling or unit designation agreements, ensuring that the interests of all parties involved are taken into consideration. Furthermore, a "Development Obligation" provision can be added to a pooling or unit designation in Contra Costa County. This provision outlines the specific obligations and responsibilities of each operator involved in the extraction process. It may include requirements for drilling and completion of wells within a certain timeframe, maintaining the equipment and infrastructure, as well as adhering to environmental and safety regulations. Additionally, a provision often seen in Contra Costa County's pooling or unit designations is the "Royalty Sharing" provision. This provision determines how the proceeds from the sale of extracted resources are distributed among the operators involved. It outlines the percentage or fraction of the royalties that each operator is entitled to, ensuring a fair and transparent distribution of profits. Lastly, the "Termination" provision is important in Contra Costa County's pooling or unit designations. It specifies the conditions under which the pooling or unit designation agreement may be terminated, such as non-compliance with the terms of the agreement, bankruptcy of one of the operators, or changes in ownership. In summary, Contra Costa County in California requires specific provisions to be added to pooling or unit designation agreements to effectively extract its oil and gas resources. These may include provisions such as the Area of Mutual Interest, Force Mature, Development Obligation, Royalty Sharing, and Termination provisions, ensuring efficient and fair operations within the county.