This form is used when the Operator desires to amend the Designation of Pooled Unit, as permitted by the terms of the Leases included in the Unit, to (increase/reduce) the size of the Unit so that, on the Effective Date of this Amendment, the Unit will consist of a specific number of acres of land, which lands are to be depicted on a plat attached to this Amendment.
The Arkansas Amendment to Pooled Unit Designation is a legal provision that pertains to the oil and gas industry in Arkansas. This amendment involves the modification or adjustment of existing pooled unit designations, which are used to determine the ownership and distribution of oil and gas resources within a particular area. In Arkansas, pooled units are created to effectively manage the production and extraction of oil and gas from a specific geographic area. These units bring together multiple leases or tracts of land and combine their interests to form a consolidated unit. This allows for more efficient drilling and production operations, as well as equitable distribution of royalties and other benefits among the various leaseholders. The Arkansas Amendment to Pooled Unit Designation enables operators or oil and gas companies to request changes to these unit designations under certain circumstances. These changes may be necessary due to factors such as changes in production levels, new geological information, or shifts in ownership rights. There are different types of Arkansas Amendment to Pooled Unit Designation that can be sought, including: 1. Expansion Amendment: This type of amendment aims to expand the boundaries of an existing pooled unit to incorporate additional leases or tracts of land. It is typically pursued when there is evidence of untapped oil or gas resources in nearby areas that could be economically viable to develop. 2. Modification Amendment: A modification amendment involves altering the configuration or scope of an existing pooled unit. This could include adjusting the size and shape of the unit or changing the allocation of ownership interests among leaseholders. Modifications may be requested to optimize operational efficiency or accommodate changes in well production and reservoir dynamics. 3. Consolidation Amendment: A consolidation amendment involves combining multiple existing pooled units into a larger unit. This is often done to facilitate better reservoir management, improve field economics, or address complications arising from fragmented ownership or leasehold structures. 4. Division Amendment: In contrast to the consolidation amendment, the division amendment seeks to split an existing pooled unit into smaller units. Divisions may be requested to resolve conflicts among leaseholders, enhance operational focus, or meet regulatory or contractual obligations. 5. Termination Amendment: This type of amendment is applied when an operator wishes to dissolve or terminate an existing pooled unit altogether. Termination may be initiated when the unit is no longer productive, uneconomical, or when it becomes necessary due to changes in land ownership or lease agreements. It is important for operators and leaseholders in Arkansas to understand the provisions and requirements of the Arkansas Amendment to Pooled Unit Designation to effectively navigate the complexities of managing oil and gas operations. By utilizing and complying with these provisions, stakeholders can ensure the efficient and fair extraction of valuable resources while respecting the rights and interests of all parties involved.
