This Agreement is entered into, between the parties subscribing, ratifying, or consenting to it. The Parties are the owners of working, royalty, or other oil and gas interests in the Unit Area subject to this Agreement.
The Mineral Leasing Act of February 25, 1920, 41 Stat. 437, as amended, 30 U.S.C., Secs. 181 et seq., authorizes Federal lessees and their representatives to unite with each other, or jointly or separately with others, in collectively adopting and operating a cooperative or unit plan of development or operation of all or any part of any oil or gas pool, field, or like area, for the purposes of more properly conserving the natural resources whenever determined and certified by the Secretary of the Interior of the United States, to be necessary or advisable in the public interest.
The Lima Arizona Unit Agreement and Plan of Unitization is a legally binding document that outlines the framework for the development and management of oil and gas resources in Lima, Arizona. This agreement is designed to promote efficient extraction of these resources while ensuring equitable distribution of benefits among all parties involved. Under the Lima Arizona Unit Agreement and Plan of Unitization, various stakeholders including mineral rights owners, operators, and other interested parties come together to form a unit. This unit represents a designated area or reservoir where the oil and gas resources are located. The purpose of unitization is to combine individual leases or tracts of land into a single, cohesive unit for the purpose of optimal resource recovery. One key aspect of the agreement is the determination of each party's proportionate share or working interest in the unit. The allocation is typically based on factors such as acreage, production history, or financial contributions. This ensures that the benefits from the unit's production are distributed fairly among the participants. The Lima Arizona Unit Agreement and Plan of Unitization also establishes guidelines for the operation and management of the unit. It may outline procedures for drilling and well location, production rates, the sharing of costs and expenses, and the collection and distribution of revenue. Additionally, it may address environmental and regulatory compliance standards to ensure the responsible and sustainable extraction of resources. In some cases, there may be different types of Lima Arizona Unit Agreement and Plan of Unitization. These variations could come in the form of specific units, designated by area or reservoir, each with its own unit agreement tailored to the unique characteristics of the resources and the participating parties. These agreements would still uphold the general principles of unitization but may have specific clauses or provisions that address the specific needs and challenges of the respective units. In conclusion, the Lima Arizona Unit Agreement and Plan of Unitization is a crucial legal document that governs the development and management of oil and gas resources in Lima, Arizona. It establishes the framework for combining individual leases into a single unit, determines each party's working interest, and outlines guidelines for operation and management. Different types of unit agreements may exist, tailored to specific units and their unique characteristics.The Lima Arizona Unit Agreement and Plan of Unitization is a legally binding document that outlines the framework for the development and management of oil and gas resources in Lima, Arizona. This agreement is designed to promote efficient extraction of these resources while ensuring equitable distribution of benefits among all parties involved. Under the Lima Arizona Unit Agreement and Plan of Unitization, various stakeholders including mineral rights owners, operators, and other interested parties come together to form a unit. This unit represents a designated area or reservoir where the oil and gas resources are located. The purpose of unitization is to combine individual leases or tracts of land into a single, cohesive unit for the purpose of optimal resource recovery. One key aspect of the agreement is the determination of each party's proportionate share or working interest in the unit. The allocation is typically based on factors such as acreage, production history, or financial contributions. This ensures that the benefits from the unit's production are distributed fairly among the participants. The Lima Arizona Unit Agreement and Plan of Unitization also establishes guidelines for the operation and management of the unit. It may outline procedures for drilling and well location, production rates, the sharing of costs and expenses, and the collection and distribution of revenue. Additionally, it may address environmental and regulatory compliance standards to ensure the responsible and sustainable extraction of resources. In some cases, there may be different types of Lima Arizona Unit Agreement and Plan of Unitization. These variations could come in the form of specific units, designated by area or reservoir, each with its own unit agreement tailored to the unique characteristics of the resources and the participating parties. These agreements would still uphold the general principles of unitization but may have specific clauses or provisions that address the specific needs and challenges of the respective units. In conclusion, the Lima Arizona Unit Agreement and Plan of Unitization is a crucial legal document that governs the development and management of oil and gas resources in Lima, Arizona. It establishes the framework for combining individual leases into a single unit, determines each party's working interest, and outlines guidelines for operation and management. Different types of unit agreements may exist, tailored to specific units and their unique characteristics.
