This form is used when the Operator desires to amend the Designation of Pooled Unit, as permitted by the terms of the Leases included in the Unit, to (increase/reduce) the size of the Unit so that, on the Effective Date of this Amendment, the Unit will consist of a specific number of acres of land, which lands are to be depicted on a plat attached to this Amendment.
The North Carolina Amendment to Pooled Unit Designation refers to a legal process that allows oil and gas operators to change or modify the designated boundaries of a pooled unit in North Carolina. The objective of this amendment is to make adjustments to the existing unit boundaries to optimize production and encourage effective resource management. In the state of North Carolina, there are two types of Amendments to Pooled Unit Designation that can be pursued: 1. Expansion Amendment: This type of amendment is utilized when the operator seeks to increase the size of the pooled unit. The expansion is typically executed by incorporating additional leases or tracts of land into the existing unit area. By expanding the unit, the operator aims to enhance production efficiency by capturing a broader area of oil and/or gas reservoirs. 2. Modification Amendment: On the other hand, the modification amendment is pursued when the operator wishes to redefine or adjust the existing boundaries of the pooled unit. This alteration can be initiated to better align with subsurface geology, improve operational efficiency, or accommodate new drilling techniques. The modification amendment ensures that the unit boundaries accurately represent the optimal distribution of resources within the exploration area. To initiate either type of amendment, operators must comply with North Carolina's regulatory processes, including filing appropriate applications, providing detailed geologic and engineering data, and notifying all affected leaseholders. The North Carolina Department of Environmental Quality (NC DEQ) plays a pivotal role in reviewing and approving these amendments to ensure they align with state regulations and objectives. The North Carolina Amendment to Pooled Unit Designation aims to strike a balance between exploiting hydrocarbon resources effectively while conforming to environmental protection standards. By allowing operators to adjust pooled unit boundaries, this amendment promotes efficient production practices and maximizes resource recovery, ultimately benefiting both operators and the state of North Carolina.
