This form is used when working interest owners desire to adopt, ratify, and confirm the Unit Designation insofar as it covers their rights, title, and interests in and to the Oil, Gas, and Mineral Leases and the lands included in the Unit created by the Unit Designation, and agree their respective interests are subject to all terms and provisions of the Unit Designation.
Michigan Ratification of Unit Designation by Working Interest Owners is a legal process that allows working interest owners in an oil and gas unit to ratify and confirm the unit designation. This means that they acknowledge and approve the established unit boundaries and their working interest ownership within the unit. The main purpose of this ratification is to ensure that all working interest owners are bound by the unit designation and its associated operations and obligations. The Michigan Ratification of Unit Designation by Working Interest Owners is an important step in the unitization process, which involves combining multiple oil and gas leases or properties into a single unit for efficient development and management. The unitization process allows for the optimal extraction of oil and gas resources, minimizing wastage and maximizing production. In Michigan, there are two types of ratification processes available: 1. Voluntary Ratification: This type of ratification occurs when all working interest owners voluntarily agree to ratify the unit designation. The agreement is typically obtained through the execution of a ratification agreement, where all parties involved sign and confirm their consent to be bound by the unit designation. 2. Forced Pooling Ratification: In some cases, not all working interest owners may voluntarily agree to ratify the unit designation. In such situations, the Michigan Department of Environment, Great Lakes, and Energy (EAGLE) has the authority to order forced pooling. Forced pooling ensures that all working interest owners are bound by the unit designation, even if they do not agree to ratify it voluntarily. The forced pooling ratification process involves a hearing where the EAGLE considers the evidence and determines if forced pooling is in the best interest of conservation and resource recovery. Keywords: Michigan, Ratification of Unit Designation, Working Interest Owners, Oil and Gas, Unitization, Voluntary Ratification, Forced Pooling Ratification, Michigan Department of Environment, Great Lakes, and Energy, Conservation, Resource Recovery.
