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.
Arizona Amendment to Pooled Unit Designation is a legal procedure that pertains to the oil and gas industry in the state of Arizona. The amendment allows for modifications to be made to the existing pooled units designated for drilling and extracting petroleum resources from the subsurface. In Arizona, pooled units are created to optimize resource extraction by joining together multiple leased tracts or land parcels. These pooled units enable efficient drilling operations and reduce the negative environmental impacts associated with multiple individual wells being drilled. The amendment to pooled unit designation provides a mechanism for operators and leaseholders to adapt and enhance the existing pooled units if certain circumstances require changes. It allows for amendments to be made to the boundaries, size, configuration, or any other specifications of the pooled units. There are various types of Arizona Amendments to Pooled Unit Designation, each initiating unique alterations to the pooled units. These types may include: 1. Boundary Amendments: This type of amendment involves modifying the boundary lines of the existing pooled units to include additional leased tracts or exclude certain areas that may no longer be feasible for extraction. The purpose is to optimize the extraction potential of the pooled unit. 2. Size Amendments: In some cases, it might be necessary to increase or decrease the size of the pooled unit for efficient resource recovery. This type of amendment aims to adjust the acreage or surface area covered by the pooled unit, considering geologic factors and extraction economics. 3. Configuration Amendments: This type of amendment focuses on changing the layout or arrangement of the pooled unit. Operators might propose a new configuration that accounts for the latest geological data, technological advancements, or to facilitate better reservoir drainage. 4. Density Amendments: Density amendment involves revising the number of wells permitted within a pooled unit. This type of amendment considers factors such as reservoir characteristics, technological advances, and operational efficiencies to optimize production and minimize costs. 5. Time Extensions: Amendments may also be made to the duration of a pooled unit. This type of amendment grants a time extension beyond the initial agreed-upon period for the pooled unit to allow for continued extraction or evaluation of reserves. The Arizona Amendment to Pooled Unit Designation process involves submitting an application to the regulatory authorities overseeing oil and gas operations. The application typically requires detailed justifications, documentation, and potential impacts assessments associated with the proposed amendment. Following review and approval from regulatory bodies, the amendment becomes legally effective, allowing operators to implement the necessary modifications to the pooled units. It is crucial for operators and leaseholders to ensure compliance with relevant regulations and consult legal professionals to navigate the complexities of Arizona's Amendment to Pooled Unit Designation process. By optimizing pooled units through amendments, the industry strives to maximize oil and gas extraction while minimizing environmental impacts and maximizing operational efficiencies.
