This form of declaration provides notice that the unit owner pools, unitizes, and combines the Unit Leases, including all renewals, extensions, ratifications, and amendments of the Unit Leases and the lands covered by those Leases and the mineral and/or royalty estates in the lands subject to the Leases into a unit for the exploration, development, and production of oil, gas, and associated hydrocarbons (the Unit ).
The Illinois Declaration of Pooled Unit — Long Form is a legal document that outlines the specifics and terms of a pooled unit in Illinois. This document is commonly used in the oil and gas industry, specifically for the purpose of efficiently pooling mineral interests in a specific area. The Illinois Declaration of Pooled Unit — Long Form serves as an agreement among the various owners of mineral rights or leasehold interests within a defined geographic area. It aims to consolidate their interests into a single unit, often referred to as a pooled unit, to streamline operations and maximize the productivity of the oil or gas well(s) within the unit. The document contains several essential components, including: 1. Pooled Unit Identification: The declaration starts by clearly identifying the pooled unit by its legal description or any other necessary details to precisely define its boundaries. 2. Parties Involved: It lists the participating parties, typically including the owners of the mineral rights or leasehold interests involved in the pooling agreement. The declaration may also outline the respective ownership percentages or shares for each party. 3. Purposes and Objectives: The declaration specifies the primary goals and objectives of the pooled unit, such as enhancing well productivity, minimizing operational costs, and maximizing the recovery of oil or gas reserves. 4. Working Interests: It outlines the distribution of working interests among the participating parties. Working interests represent the ownership rights and responsibilities associated with the operations, costs, and revenues generated from the pooled unit. 5. Royalty Interests: The declaration elucidates the allocation of royalty interests, which entitle the owners to a share of the revenue generated from the extraction and sale of oil or gas. This section typically describes the distribution percentages or fractions for each party. 6. Voting Rights: The document may detail how decisions regarding the operations, production, and development of the pooled unit will be made. It could outline the voting rights of the participating parties, which may be proportionate to their ownership percentages or operate on a different basis. 7. Term and Termination: The declaration specifies the duration of the pooling agreement, including the start and end dates. It may also outline the conditions or events that can lead to the termination or modification of the agreement. Types of Illinois Declaration of Pooled Unit — Long Form: While the Illinois Declaration of Pooled Unit — Long Form essentially serves the same purpose across different cases, variations may exist depending on the specific requirements of the oil or gas project. Some potential types or variations of the document may include: 1. Oil-focused Pooled Unit Declaration: This type of declaration is primarily designed for pooling mineral rights solely for oil exploration, extraction, and production purposes. 2. Gas-focused Pooled Unit Declaration: This variation focuses on pooling mineral rights for natural gas operations, including drilling, extraction, and processing. 3. Combined Oil and Gas Pooled Unit Declaration: In cases where both oil and gas reserves are present within a specified area, this type of declaration accounts for the pooling of mineral rights for the combined exploration and production of oil and gas. In conclusion, the Illinois Declaration of Pooled Unit — Long Form is a detailed legal document used in the oil and gas industry to consolidate mineral rights or leasehold interests into a pooled unit. It provides a framework for efficiently and effectively managing operations, costs, and revenues among the participating parties.
