This Designation is executed by the Operator and Working Interest Owners and filed of record for the purpose of evidencing their election to exercise the pooling authority granted to the lessees in the Leases, to give notice of the Unit being established, and to identify and describe the lands included in the Unit.
Alaska Designation of Pooled Unit and Declaration of Pooling For Oil Or Gas refer to legal mechanisms used in the state of Alaska to consolidate multiple oil or gas leases or tracts into a single unit for efficient and effective resource extraction. These designations are employed to optimize production, prevent waste, and ensure fair allocation of profits among multiple leaseholders. One type of Alaska Designation of Pooled Unit is the "Proudhon Bay Unit," which encompasses the Proudhon Bay field, one of the largest oil fields in North America. This unit was established in the 1970s and includes multiple lease tracts owned by different companies, all operating cooperatively for oil extraction. Another example is the "North Slope Unit." This unit consists of various lease tracts along Alaska's North Slope, which collectively contribute to the overall oil and gas production in the region. By pooling these tracts, operators can achieve economies of scale, share infrastructure, and enhance operational efficiencies. The Designation of Pooled Unit and Declaration of Pooling process involves a comprehensive evaluation by the Alaska Department of Natural Resources and the Regulatory Commission of Alaska. These authorities ensure that the pooling request adheres to stringent regulations and aligns with the state's objectives of maximized resource recovery and protection of the environment. To initiate the designation process, the operator or leaseholder submits a formal Declaration of Pooling, which outlines the specific tracts to be included in the pooled unit. The declaration will also mention the objectives, boundaries, and operating plans, including drilling and production schedules. Once the Declaration of Pooling is approved, all leaseholders within the designated unit share the costs, risks, and benefits of production. This includes the distribution of royalties, taxation, and any related contractual obligations. The Alaska Designation of Pooled Unit and Declaration of Pooling play a crucial role in ensuring the efficient and sustainable extraction of oil or gas resources. By consolidating diverse lease tracts or units, these mechanisms enable the adoption of modern drilling technologies, reduce redundant infrastructure, and minimize environmental impacts. Overall, Alaska's Designation of Pooled Unit and Declaration of Pooling provide a robust framework for the rational development of oil or gas resources in the state, facilitating collaboration among leaseholders and encouraging responsible resource management.
