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.
California Designation of Pooled Unit and Declaration of Pooling For Oil Or Gas is a legal document that allows for the combination of multiple land tracts or leases into a single unit for the purpose of exploration and extraction of oil or gas resources. This pooling mechanism is governed by specific regulations and requirements set forth by the California Division of Oil, Gas, and Geothermal Resources (Dog). In California, there are different types or categories of Designation of Pooled Unit and Declaration of Pooling, each serving different purposes depending on the specific scenario. Some common types include: 1. Voluntary Pooling: This type of pooling occurs when owners or lessees of adjacent or contiguous oil or gas properties voluntarily agree to combine their interests into a single unit. This collaboration aims to enhance overall efficiency, maximize resource recovery, and reduce operational costs. 2. Compulsory Pooling: In some situations, the Dog may order compulsory pooling to ensure that all mineral interests within a defined area contribute to the development of oil or gas resources. This type of pooling is typically enforced when individual landowners refuse to participate in voluntary pooling efforts. 3. Unitization: Unitization is a specialized form of pooling where multiple leases from different landowners or operators are combined to form a single unit. This approach is generally applied when an oil or gas reservoir extends across multiple properties and requires to be coordinated production efforts for optimal recovery. The California Designation of Pooled Unit and Declaration of Pooling involves several critical components. Firstly, it identifies the specific lands or leases included in the unit, detailing their legal descriptions and areas. It also defines the working interest, royalty interest, and other pertinent ownership categories or percentages for each participating party. Additionally, the document establishes the rules and regulations governing the pooled unit, including the allocation of production costs and revenues among the parties involved. This helps to ensure equitable distribution of expenses and income derived from the oil or gas operation. The Designation of Pooled Unit and Declaration of Pooling also outlines the operational protocols, such as drilling and production methods, safety measures, environmental protections, and reporting requirements. Compliance with state and federal regulations is paramount throughout the pooling process. Overall, the California Designation of Pooled Unit and Declaration of Pooling for Oil or Gas is a crucial legal instrument aimed at fostering efficient resource development while safeguarding the interests of all participating parties. The various types of pooling mechanisms mentioned above provide flexibility in situations where voluntary cooperation may not be feasible, promoting responsible and effective extraction of California's oil and gas resources.
