Michigan Communitization Agreement

State:
Multi-State
Control #:
US-OG-736
Format:
Word; 
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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.

A Michigan Commoditization Agreement refers to a legally binding contract or agreement that allows oil and gas companies to pool their contiguous lands in order to jointly develop and maximize the production of natural resources. This agreement is a significant component of the oil and gas industry in Michigan and plays a vital role in ensuring efficient and environmentally responsible extraction processes. The Michigan Commoditization Agreement is designed to promote collaboration between individual landowners and operators to consolidate their land holdings, streamline operations, and create a more effective and economical drilling and extraction process. By pooling together their respective tracts of land, companies can share the costs of exploration, development, and production activities, minimizing waste and maximizing profitability. Keywords: 1. Michigan Commoditization Agreement: The primary term used to describe the pooling contract in the state. 2. Oil and gas industry: Refers to the sector involved in the extraction, refining, and distribution of petroleum and natural gas. 3. Natural resources: Describes valuable substances found within the earth, including crude oil, natural gas, and minerals. 4. Landowners: Individuals or entities who own tracts of land and have the right to enter into agreements for resource exploration and extraction. 5. Operators: Companies or organizations engaged in the exploration, development, and production of oil and gas resources. 6. Pooling: The process of combining multiple land parcels to facilitate shared operations and resource extraction. 7. Efficient extraction: Optimizing the methods and processes to effectively extract resources while minimizing waste and environmental impact. 8. Economical drilling: Minimizing costs associated with drilling activities, such as equipment, labor, and logistics, to maximize profitability. 9. Exploration and development: Refers to the activities undertaken to locate and assess the potential of oil and gas reserves and prepare for production. 10. Production: The process of extracting and recovering oil and gas resources from the underground reservoirs. Michigan Commoditization Agreements can be further categorized into different types based on their purpose or the specific provisions included. Some common types include: 1. Exploration Commoditization Agreement: Focuses on pooling lands for initial exploration and assessment of potential resources. 2. Development Commoditization Agreement: Aims to consolidate lands for the purpose of drilling and extracting resources on a larger scale. 3. Unitization Agreement: Similar to a Commoditization Agreement, but typically involves a larger area, often including multiple leases or tracts of land, and is more comprehensive in its coverage. 4. Enhanced Recovery Agreement: Specific to situations where enhanced recovery techniques are employed to extract additional oil or gas from existing reservoirs. This type of agreement typically focuses on maximizing the recovery efficiency of wells. 5. Secondary Recovery Agreement: Targets the secondary recovery methods for extracting oil or gas from a reservoir after initial production has ceased. These methods include injecting water or other fluids to increase pressure and displace additional resources. In conclusion, the Michigan Commoditization Agreement facilitates collaboration and coordination among oil and gas companies and landowners to efficiently and responsibly extract natural resources. By pooling contiguous lands, companies can combine their efforts, streamline operations, and enhance profitability. The different types of agreements cater to various stages of exploration, development, and specialized techniques for resource extraction.

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FAQ

§ 3217.11 What are communitization agreements? 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.

A unit agreement entails a BLM-approved agreement to cooperate in all facets of oil and gas production, without regard to lease boundaries and ownership. All unit agreements are subject to Onshore Oil and Gas Operations regulations (43 CFR Part 3160).

1. n. [Oil and Gas Business] The combining of smaller federal tracts of land to total the acreage required by the US Bureau of Land Management and/or state regulations to form a legal spacing and proration unit.

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A complete list of ... The application shall include a certified copy of the pooling or communitization agreement and the plans for exploration or development. Check all boxes and fill in all blanks which apply. ... The application shall include a certified copy of the pooling or communitization agreement and the plans ...The form must be complete as to the following: A. SUIT/BLM Communitization ... the Communitization Agreement are, to the best of my knowledge, the working ... The communitization agreement must be filed prior to the expiration of the federal leases to be communitized.[19] The regulations require that the ... Sec. 61503b. (1) A person who enters into a gas lease as a lessee after March 28, 2000 shall not deduct from the lessor's royalty any portion of postproduction ... 43 CFR 3105.2 - Communitization or drilling agreements. View the most recent version of this document on this website. Summary; Document in ... Jun 20, 2023 — The agreement must be signed by or on behalf of all necessary parties and filed before the expiration of the Federal lease(s) involved in order ... May 24, 1973 — Jackson, Michigan 49201. Attention: Mr. R. S. Godbout. Gentlemen: Enclosed are two approved copies of the communitization agreement involving ... (i) The application for permit shall be accompanied by a certified statement establishing that a good faith effort had been made to obtain the lease or leases ... ... a well shall completely and accurately fill out, sign, ... The application shall include a certified copy of the pooling or communitization agreement and the ...

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Michigan Communitization Agreement