California Declaration of Pooled Unit - Short Form

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Multi-State
Control #:
US-OG-376
Format:
Word; 
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Description

This declaration is executed by an Operator and filed of record for the purpose of exercising the pooling authority granted to the Lessee in the Leases, and giving notice of the Lands included in the Unit established by the Operator.
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FAQ

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.

Forced pooling or compulsory pooling is a form of governmental regulation used in junction with conservation laws. Texas was one of the last states to enact a compulsory pooling statute. [11] The purpose of these acts is to prevent waste and protect correlative rights.

- Pooled unit is treated as a single tract/lease for purposes. of drilling, development and sharing of revenues. - Production proceeds are allocated to the separate leases. based upon acreage contributed to the pooled unit (ratio)

Pooling is ?the bringing together of small tracts sufficient for the granting of a well permit under applicable spacing rules,? while unitization is ?the joint operation of all or some portion of a producing reservoir.?[1] While pooling and unitization are both used to prevent waste and protect correlative rights,[2] ...

Section 102.014 authorizes small tract owners to force-pool their tracts into adjoining tracts of equal or greater size than standard proration units in the field.

?Units pooled for oil hereunder shall not substantially exceed 40 acres each in area, and units pooled for gas hereunder shall not substantially exceed in area 640 acres each plus a tolerance of 10% thereof.?

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California Declaration of Pooled Unit - Short Form