Dissolution of Pooled Unit
What is this form?
The Dissolution of Pooled Unit form is a legal document used to formally dissolve a pooled unit, which typically relates to the pooling of oil and gas leases. This form serves to notify the relevant authorities and stakeholders that the purpose of the unit, initially formed for exploration and production, is no longer valid. Unlike other forms related to general lease agreements, the dissolution form specifically addresses the termination of pooled unit operations in a clear and legally recognized manner.
Main sections of this form
- Name and address of the declarant
- Effective date of the dissolution
- Reference to the original designation of the unit
- Statement regarding the cessation of production in the unit
- Notice of dissolution recorded in the county records
When this form is needed
This form should be used when the oil and gas leases associated with a pooled unit are no longer producing and when there are no ongoing operations to maintain those leases. It is essential when the unit's primary purpose has been fulfilled, and the stakeholders need to officially acknowledge its dissolution.
Who this form is for
- Pooled unit operators who need to dissolve a unit
- Landowners looking to formally end a pooled agreement
- Legal representatives handling lease agreements
- Consultants working in the oil and gas industry
Steps to complete this form
- Identify and enter the name and address of the declarant.
- Specify the effective date for the dissolution.
- Reference the original designation of the unit, including date and recording information.
- Confirm that production has ceased and include any relevant statements regarding ongoing operations.
- File the completed form with the appropriate county records office.
Does this form need to be notarized?
This form does not typically require notarization to be legally valid. However, some jurisdictions or document types may still require it. US Legal Forms provides secure online notarization powered by Notarize, available 24/7 for added convenience.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Failing to include the effective date of dissolution.
- Omitting the original unit designation or recording details.
- Not properly filing the form in the correct county.
- Using vague language that does not clearly state the cessation of operations.
Why complete this form online
- Convenient downloadable format for ease of use.
- Edit the form as needed to fit specific details of the pooled unit.
- Access reliable templates drafted by licensed attorneys.
Quick recap
- The Dissolution of Pooled Unit form is essential for officially ending pooled unit operations.
- Accurate completion is vital to avoid legal issues and record discrepancies.
- Consult state-specific rules to ensure proper filing and compliance.
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FAQ
It also records a "Declaration of Pooling" or similarly named document in the land records office at the local Courthouse. The declaration shows the boundaries of the pooling unit and identifies all the landowners and amount of property each landowner actually has in the unit.
Pooling is the combination of all or portions of multiple oil and gas leases to form a unit for the drilling of a single oil and/or gas well.The oil and gas company can lease these under separate leases and separate terms and then pool these parcels to drill the well.
Net revenue is the amount that is shared among the property owners. To determine net revenue interest, multiply the royalty interest by the owner's shared interest. For example, if you have a 5/16 royalty, your net royalty interest would be 25% multiplied by 5/16, which equals 7.8125% calculated to four decimal places.
As noted above, while pooling focuses on efficiently combining lands for the purpose of obtaining a drilling permit to drill a single well, unitization focuses on the combination of interests covering a larger area to facilitate development of all or part of a common source of supply (i.e. a field/reservoir).
The specific provisions of the laws vary from state to state, but drillers are generally allowed to extract minerals from a large area or "pool"--in most states a minimum of 640 acres--if leases have been negotiated for a certain percentage of that land. The company can then harvest gas from the entire area.
Pooling Clause: Joining the Leased Land with Other Land The area formed is called a pool or sometimes a pooled unit. Pooling permits the lessee to prevent waste by avoiding unnecessary drilling and to protect the correlative rights of the mineral owners in the common reservoir.
Use this formula to calculate your decimal share of royalties from the producing well: (Mineral Interest Share) times (Royalty Rate) = (Royalty Share Decimal). Example 1: (1/3 x 100% mineral interest) times (1/8 Royalty Rate) = 1/3 x 1/8 = 1/24 = 0.04166667 RI.
The oil and gas leases being used by companies leasing in the Marcellus shale include a provision that allows the gas company to combine, or pool, the landowner's acreage with property from other leased landowners to form a production unit.
Once a Pooling Order is entered, you will receive a copy of the Order, which will state your options as an owner of an interest in the unit. Typically, the Order will afford you a number of options of a cash bonus and royalty payments on production based on the fair market value of your interest.
Forced Pooling (sometimes called Statutory or Compulsory Pooling) is a legal mechanism that allows oil and gas operators to drill wells when they are unable to get 100% of the mineral interests to commit to support the drilling of a well.
