In some jurisdictions (including Texas) an overriding royalty interest owners interest cannot be pooled without the overriding royalty owners consent. This form provides for the overriding royalty interest owner to ratify an existing pooling or unitization to allow the overriding royalty interest to participate in production
Delaware Ratification and Consent to Pooling and/or Unitization by Overriding Royalty Interest Owner refers to the legal process through which an overriding royalty interest (ORRIS) owner in Delaware grants their permission and consent for the pooling and unitization of oil and gas properties. This agreement allows for the combination of multiple oil and gas leases or tracts into a single unit, enabling efficient exploration and production operations. Keywords: Delaware, ratification, consent, pooling, unitization, overriding royalty interest owner, oil and gas properties, exploration, production operations. Types of Delaware Ratification and Consent to Pooling and/or Unitization by Overriding Royalty Interest Owner: 1. Voluntary Ratification: This type of ratification occurs when the overriding royalty interest owner voluntarily agrees to the pooling and unitization of their interest. It is usually done to benefit from the collective production efficiencies and the potential for increased royalties. 2. Compulsory Ratification: In some cases, the pooling and unitization may be compulsory, meaning the ORRIS owner is legally required to ratify the agreement. This typically happens when a majority of the working interest owners have agreed to unitize and the overriding royalty interest owner's consent is necessary to make the agreement effective. 3. Operational Agreement Ratification: Sometimes, the ORRIS owner's ratification and consent are required to participate in the operational agreements related to pooling and unitization. This ensures that the ORRIS owner receives their fair share of the production revenues and maintains their interest in the unit. 4. Partial Ratification: A partial ratification occurs when the overriding royalty interest owner agrees to pool and unitize only a portion of their interest, rather than the entire interest. This allows for flexibility in managing their overall asset portfolio while still benefiting from the collective operations of the unitized properties. 5. Bonus or Consideration Ratification: In certain situations, the ORRIS owner may receive a bonus or additional consideration for ratifying the pooling and unitization agreement. This could be in the form of an upfront payment, an increased royalty percentage, or other financial incentives to encourage their consent. Overall, Delaware Ratification and Consent to Pooling and/or Unitization by Overriding Royalty Interest Owner is a crucial process for the successful development and efficient management of oil and gas resources in Delaware. It facilitates cooperation among interest owners and maximizes the potential for production and revenue generation.
