Phoenix Arizona Declaration of Pooled Unit For Oil and Gas

• Category: Oil Gas and Minerals - Pooling and Unitization
• State: Multi-State
• City: Phoenix
• Control #: US-OG-374
• Format: Word; Rich Text

Description

This declaration is executed by the Operatorand filed of record for the purpose of exercising the pooling authority granted to the Lessee in the Leases, and giving notice of the Lands comprising the Unit established by Operator. The Phoenix Arizona Declaration of Pooled Unit for Oil and Gas is a legal document that establishes the creation and management of pooled units in the oil and gas industry. It is a crucial step in facilitating the extraction and production of oil and gas resources while providing regulations and guidelines for the industry players involved. A pooled unit refers to a designated area within a larger oil and gas field, where multiple wells and leaseholders can come together and jointly develop their natural resources. The purpose of forming a pooled unit is to effectively manage the extraction process, optimize resource recovery, and eliminate waste in drilling duplicate or overlapping wells. The Phoenix Arizona Declaration of Pooled Unit for Oil and Gas outlines the following key components: 1. Formation and Purpose: This section describes the purpose of the document, which is to define the terms and conditions for establishing and operating a pooled unit in Phoenix, Arizona. It outlines the intention of the parties involved to combine and consolidate their leases or interests in the designated area for efficient resource extraction and profit sharing. 2. Designation of Unit Area: This part delineates the boundaries and specific acreage of the pooled unit within the larger oil and gas field. It includes a legal description of the unit area, providing precise details for identification and reference. 3. Unit Operator and Operator's Rights: The document designates an operator responsible for overseeing and managing the operations within the pooled unit. It outlines the operator's rights, such as the authority to drill and complete wells, maintain facilities, negotiate contracts, and distribute production proceeds to the working interest owners. 4. Working Interest and Royalty Ownership: This section specifies the proportional interests and ownership rights of the participating parties. It details the calculation of working interest ownership, which determines the portion of costs, expenses, and revenues allocated to each owner. Additionally, it outlines the royalty obligations and distributions to the mineral rights owners. 5. Unit Operations and Expenses: The declaration establishes guidelines for conducting operations within the pooled unit, including drilling, production, and exploration activities. It outlines the responsibilities, cost-sharing arrangements, and voting rights of the participants regarding major decisions, such as drilling new wells, implementing work overs, or strategic modifications. 6. Term and Termination: This part defines the duration of the pooled unit and the conditions under which it can be terminated or modified. It may include provisions for extension, renewal, or termination by mutual agreement or specific circumstances such as non-compliance with the stated terms. Different types of Phoenix Arizona Declaration of Pooled Unit for Oil and Gas may exist depending on various factors such as the geographical location, specific regulations, and contractual agreements. For instance, variations may arise due to differences in the oil and gas reserves, state-specific regulations, or specific provisions required by the participating parties or government authorities. In conclusion, the Phoenix Arizona Declaration of Pooled Unit for Oil and Gas serves as a crucial legal document that governs the establishment and operation of pooled units in the oil and gas industry. It provides a framework for collaboration, cost-sharing, and efficient resource extraction for the benefit of all involved parties.

The Phoenix Arizona Declaration of Pooled Unit for Oil and Gas is a legal document that establishes the creation and management of pooled units in the oil and gas industry. It is a crucial step in facilitating the extraction and production of oil and gas resources while providing regulations and guidelines for the industry players involved. A pooled unit refers to a designated area within a larger oil and gas field, where multiple wells and leaseholders can come together and jointly develop their natural resources. The purpose of forming a pooled unit is to effectively manage the extraction process, optimize resource recovery, and eliminate waste in drilling duplicate or overlapping wells. The Phoenix Arizona Declaration of Pooled Unit for Oil and Gas outlines the following key components: 1. Formation and Purpose: This section describes the purpose of the document, which is to define the terms and conditions for establishing and operating a pooled unit in Phoenix, Arizona. It outlines the intention of the parties involved to combine and consolidate their leases or interests in the designated area for efficient resource extraction and profit sharing. 2. Designation of Unit Area: This part delineates the boundaries and specific acreage of the pooled unit within the larger oil and gas field. It includes a legal description of the unit area, providing precise details for identification and reference. 3. Unit Operator and Operator's Rights: The document designates an operator responsible for overseeing and managing the operations within the pooled unit. It outlines the operator's rights, such as the authority to drill and complete wells, maintain facilities, negotiate contracts, and distribute production proceeds to the working interest owners. 4. Working Interest and Royalty Ownership: This section specifies the proportional interests and ownership rights of the participating parties. It details the calculation of working interest ownership, which determines the portion of costs, expenses, and revenues allocated to each owner. Additionally, it outlines the royalty obligations and distributions to the mineral rights owners. 5. Unit Operations and Expenses: The declaration establishes guidelines for conducting operations within the pooled unit, including drilling, production, and exploration activities. It outlines the responsibilities, cost-sharing arrangements, and voting rights of the participants regarding major decisions, such as drilling new wells, implementing work overs, or strategic modifications. 6. Term and Termination: This part defines the duration of the pooled unit and the conditions under which it can be terminated or modified. It may include provisions for extension, renewal, or termination by mutual agreement or specific circumstances such as non-compliance with the stated terms. Different types of Phoenix Arizona Declaration of Pooled Unit for Oil and Gas may exist depending on various factors such as the geographical location, specific regulations, and contractual agreements. For instance, variations may arise due to differences in the oil and gas reserves, state-specific regulations, or specific provisions required by the participating parties or government authorities. In conclusion, the Phoenix Arizona Declaration of Pooled Unit for Oil and Gas serves as a crucial legal document that governs the establishment and operation of pooled units in the oil and gas industry. It provides a framework for collaboration, cost-sharing, and efficient resource extraction for the benefit of all involved parties.