Kansas Communitization Agreement

State:
Multi-State
Control #:
US-OG-736
Format:
Word; 
Rich Text
Instant download

Description

This form is pursuant to The Act of February 25, 1920, as amended and supplemented, authorizes communitization or drilling agreements communitizing or pooling all or a portion of a Federal oil and gas lease, with other lands, whether or not owned by the United States, when separate tracts under the Federal lease cannot be independently developed and operated in conformity with an established well-spacing program for the field or area.

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FAQ

Typically, mineral rights are associated with rural agricultural land. Agricultural land is not appraised at market value in Kansas. Thus, unsevered subsurface mineral rights are not assessed or taxed.

Under the Act, if an owner of a severed mineral interest has not used the mineral interest for a continuous period of 20 years or more, the owner of the surface estate may, after giving notice to the severed mineral interest owner, extinguish the severed mineral interest and reunite the interest with the surface estate ...

Under communitization agreements (also called drilling agreements), operators who cannot independently develop separate tracts due to well-spacing or well development programs may cooperatively develop such tracts.

The value of mineral rights per acre differs from state to state. Typically, the price ranges from $100 to $5,000 per acre in several states. In Texas, the average price per acre for non-producing mineral rights is usually between $0 and $250 per acre, as a general guideline.

Also known as a mineral estate, mineral rights are just what their name implies: The right of the owner to utilize minerals found below the surface of property. Besides minerals, these rights can apply to oil and gas. Interestingly, mineral rights can be separate from actual land ownership.

Mineral rights are defined as the right of ownership of the mineral resources that underlie a tract of land. Both the land surface and the resources below the surface can be owned and are considered property.

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Kansas Communitization Agreement