This declaration is used when a unit operator desires to supplement and amend a Declaration of Pooled Unit to include in the unit the oil, gas and mineral leases described in Exhibit A to this Supplement, covering lands within the confines of the Unit Area.
The Louisiana Supplemental Declaration of Pooled Unit is a legal document that plays a crucial role in the oil and gas industry. It is a supplementary agreement that outlines the terms and conditions for the creation and operation of a pooled unit in Louisiana. In simple terms, a pooled unit refers to the combination of multiple oil and gas leases or tracts of land that are geographically close to each other. This consolidation allows operators to efficiently extract the hydrocarbon resources within the boundaries of the unit. The Louisiana Supplemental Declaration of Pooled Unit serves as an addendum to the primary lease agreement. This declaration includes several key elements that define the rights and obligations of all parties involved. It specifies the boundaries of the pooled unit, which are established based on geological and engineering considerations. The declaration also outlines the formula for the allocation of costs, expenses, and production revenues among the owners of the leased interests within the pooled unit. One of the significant aspects covered in the Louisiana Supplemental Declaration of Pooled Unit is the decision-making process. It establishes the procedures for voting on matters related to operations, such as drilling, testing, and production activities. The declaration also addresses issues like equipment sharing, liabilities, and regulatory compliance. Louisiana recognizes various types of Supplemental Declarations of Pooled Units, each serving a specific purpose depending on the situation. Some of these types include: 1. Initial Supplemental Declaration of Pooled Unit: This type of declaration is executed when the pooled unit is initially formed. It establishes the baseline framework for the operation and administration of the unit. 2. Amended Supplemental Declaration of Pooled Unit: If there is a need to modify or update the terms and conditions of the original declaration, an amended supplemental declaration is executed. Changes may include adjustments to the boundaries, costs, voting procedures, or any other relevant provisions. 3. Ratification Supplemental Declaration of Pooled Unit: In certain cases, a supplemental declaration may need to be ratified by the owners of the leased interests within the pooled unit. This type of declaration ensures that all parties are in agreement with the terms and conditions outlined in the original or amended declaration. It is essential to consult with legal professionals to draft and execute a Louisiana Supplemental Declaration of Pooled Unit accurately. This document plays a critical role in regulating the exploration and production activities within an oil and gas pooled unit while protecting the rights and interests of the various stakeholders involved.
