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.
The Idaho Designation of Pooled Unit and Declaration of Pooling For Oil Or Gas is an essential legal concept in the oil and gas industry. This designation allows multiple oil or gas leases in the same geographic area to be combined into a single unit for efficient and coordinated extraction operations. The Idaho Designation of Pooled Unit is a mechanism that enables operators to maximize the recovery of oil or gas reserves from a given geographical area by consolidating multiple leasehold interests into a single unit. This unit is referred to as a pooled unit, and it allows operators to effectively plan and carry out extraction activities. By employing the Declaration of Pooling, the Idaho Department of Lands or other relevant regulatory authorities can authorize the consolidation of leasehold interests within a specific geographic area, allowing operators to efficiently and economically extract hydrocarbon resources. This pooling declaration facilitates accurate accounting of production, simplifies royalty payments, prevents waste, and minimizes surface disturbances. There are different types of Idaho Designation of Pooled Unit and Declaration of Pooling For Oil Or Gas. Some commonly used types include: 1. Voluntary Pooling: This type occurs when operators voluntarily choose to combine their leasehold interests within a specific geographic area to form a pooled unit. It requires the consent of all participating leaseholders. 2. Compulsory Pooling: In certain situations, regulatory authorities can enforce pooling if it benefits the efficient and orderly development of oil or gas resources. Compulsory pooling may be invoked when one or more leaseholders reluctant to pool in a specific area hinder optimal resource recovery. 3. Lease-Line Pooling: This type of pooling occurs when operators combine their leasehold interests along a defined boundary or lease line. It allows for a more extensive and coordinated extraction in a specific area to enhance production efficiency. 4. Unitization: In the case of larger oil or gas fields spanning across multiple leasehold interests, unitization may be employed. Unitization involves the consolidation of various leasehold interests and development operations, aiming to maximize hydrocarbon recovery and minimize operational redundancies. The Idaho Designation of Pooled Unit and Declaration of Pooling For Oil Or Gas plays a crucial role in the responsible development and management of oil and gas resources. It promotes cooperation among operators, streamlines operations, safeguards the environment, and ensures the efficient recovery of valuable energy resources.
