Kings New York Provisions That May Be Added to A Pooling Or Unit Designation

• Category: Oil Gas and Minerals - Pooling and Unitization
• State: Multi-State
• County: Kings
• 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. Kings New York Provisions That May Be Added to A Pooling Or Unit Designation In Kings New York, there are specific provisions that may be added to a pooling or unit designation, ensuring an efficient and systematic approach to the exploration and production of oil and gas resources. These provisions are designed to regulate the sharing of resources, prevent wasteful operations, and protect the rights and interests of all parties involved in the pooling or unitization process. 1. Joint Operating Agreement (JOB): The JOB outlines the rights and obligations of the operators involved in a pooling or unitization agreement. It governs the management, operation, and conduct of activities related to the pooled or unitized area, addressing issues such as cost-sharing, drilling priorities, operational procedures, and decision-making processes. 2. Allocation of Production: This provision determines how the production from the pooled or unitized area will be allocated among the participating operators. It takes into account various factors such as the percentage of ownership, contributed capital, acreage, or other agreed-upon parameters. 3. Maintenance of Unitization: To ensure the continued effectiveness and functionality of the unit or pooling arrangement, this provision establishes the requirements and procedures for maintaining the unitized operations. It may include provisions regarding the drilling of primary and secondary wells, well spacing, and reservoir management practices. 4. Unit Area Redetermination: This provision allows for the periodic review and adjustment of the unit boundaries and participating interests based on new data or changes in reservoir conditions. It ensures that the unitized area remains economically viable and reflects the fair and equitable distribution of resources among the operators. 5. Royalty and Revenue Sharing: This provision governs the distribution of royalties and revenues generated from the production within the pooled or unitized area. It outlines the percentage allocated to royalty owners, working interest owners, and royalty or production-sharing agreements, reflecting the parties' respective interests. 6. Non-Consent Penalty: In situations where an operator decides not to participate in a proposed activity or project within the pooled or unitized area, this provision establishes the penalties or consequences for their non-consent. It may involve compensation arrangements or the dilution of their interest in the unit. 7. Default and Dispute Resolution: This provision addresses defaulting parties, breaches of the pooling or unitization agreement, and mechanisms for resolving disputes among the operators. It typically outlines the steps for arbitration or mediation processes to resolve conflicts and maintain the unity of operations. 8. Environmental and Regulatory Compliance: Kings New York's provisions may also include specific regulations and requirements related to environmental protection, health, safety, and regulatory compliance. Operators must adhere to these provisions to ensure responsible and sustainable energy development. By incorporating these provisions into a pooling or unit designation in Kings New York, operators can effectively manage their shared oil and gas resources, minimize conflicts, and promote responsible exploration and production practices. These provisions protect the rights of the involved parties and facilitate optimal resource recovery while adhering to legal and environmental requirements.

Kings New York Provisions That May Be Added to A Pooling Or Unit Designation In Kings New York, there are specific provisions that may be added to a pooling or unit designation, ensuring an efficient and systematic approach to the exploration and production of oil and gas resources. These provisions are designed to regulate the sharing of resources, prevent wasteful operations, and protect the rights and interests of all parties involved in the pooling or unitization process. 1. Joint Operating Agreement (JOB): The JOB outlines the rights and obligations of the operators involved in a pooling or unitization agreement. It governs the management, operation, and conduct of activities related to the pooled or unitized area, addressing issues such as cost-sharing, drilling priorities, operational procedures, and decision-making processes. 2. Allocation of Production: This provision determines how the production from the pooled or unitized area will be allocated among the participating operators. It takes into account various factors such as the percentage of ownership, contributed capital, acreage, or other agreed-upon parameters. 3. Maintenance of Unitization: To ensure the continued effectiveness and functionality of the unit or pooling arrangement, this provision establishes the requirements and procedures for maintaining the unitized operations. It may include provisions regarding the drilling of primary and secondary wells, well spacing, and reservoir management practices. 4. Unit Area Redetermination: This provision allows for the periodic review and adjustment of the unit boundaries and participating interests based on new data or changes in reservoir conditions. It ensures that the unitized area remains economically viable and reflects the fair and equitable distribution of resources among the operators. 5. Royalty and Revenue Sharing: This provision governs the distribution of royalties and revenues generated from the production within the pooled or unitized area. It outlines the percentage allocated to royalty owners, working interest owners, and royalty or production-sharing agreements, reflecting the parties' respective interests. 6. Non-Consent Penalty: In situations where an operator decides not to participate in a proposed activity or project within the pooled or unitized area, this provision establishes the penalties or consequences for their non-consent. It may involve compensation arrangements or the dilution of their interest in the unit. 7. Default and Dispute Resolution: This provision addresses defaulting parties, breaches of the pooling or unitization agreement, and mechanisms for resolving disputes among the operators. It typically outlines the steps for arbitration or mediation processes to resolve conflicts and maintain the unity of operations. 8. Environmental and Regulatory Compliance: Kings New York's provisions may also include specific regulations and requirements related to environmental protection, health, safety, and regulatory compliance. Operators must adhere to these provisions to ensure responsible and sustainable energy development. By incorporating these provisions into a pooling or unit designation in Kings New York, operators can effectively manage their shared oil and gas resources, minimize conflicts, and promote responsible exploration and production practices. These provisions protect the rights of the involved parties and facilitate optimal resource recovery while adhering to legal and environmental requirements.