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 Indiana Designation of Pooled Unit and Declaration of Pooling for Oil or Gas is a legal procedure that allows multiple oil or gas leaseholders to join their interests together to explore and produce hydrocarbons efficiently. This pooling mechanism aims to streamline operations, reduce costs, and maximize the recovery of oil or gas resources. The primary purpose of the Indiana Designation of Pooled Unit and Declaration of Pooling for Oil or Gas is to combine multiple leasehold interests into a unified unit. By doing so, the operators can collectively develop the unitized area and share the production and revenue according to their respective leasehold percentages. There are two main types of pooling in Indiana: 1. Voluntary Pooling: Voluntary pooling occurs when leaseholders voluntarily agree to pool their interests to form a unified unit. This type of pooling typically requires consent from all involved parties and is commonly utilized to expedite exploration and production activities in oil or gas fields. 2. Compulsory Pooling: In certain circumstances, compulsory pooling can be initiated to carry out oil or gas operations efficiently. Also known as statutory pooling, it allows an operator to force non-consenting parties into the pooled unit. This type of pooling is typically invoked in situations where there is a minority of leaseholders who do not agree to voluntary pooling, but their participation is necessary for optimal resource recovery. The Indiana Designation of Pooled Unit and Declaration of Pooling for Oil or Gas process involves filing a formal petition with the Indiana Department of Natural Resources (DNR) or the appropriate regulatory agency. The petition provides a detailed description of the proposed pool boundaries, participating leaseholds, and the desired allocation of costs and production from the pooled unit. The DNR reviews the petition and considers various factors before granting approval. Upon approval, the pooled unit is officially designated, and all participants are bound by the terms and conditions specified in the pooling declaration. These terms typically include guidelines related to cost-sharing, revenue sharing, drilling obligations, and coordination of operations within the pooled unit. The Indiana Designation of Pooled Unit and Declaration of Pooling for Oil or Gas is an essential tool that promotes efficient and equitable resource development. It enables leaseholders to collaborate, mitigate operational risks, and optimize production outcomes.
