This Agreement is entered into, between the parties subscribing, ratifying, or consenting to it. The Parties are the owners of working, royalty, or other oil and gas interests in the Unit Area subject to this Agreement.
The Mineral Leasing Act of February 25, 1920, 41 Stat. 437, as amended, 30 U.S.C., Secs. 181 et seq., authorizes Federal lessees and their representatives to unite with each other, or jointly or separately with others, in collectively adopting and operating a cooperative or unit plan of development or operation of all or any part of any oil or gas pool, field, or like area, for the purposes of more properly conserving the natural resources whenever determined and certified by the Secretary of the Interior of the United States, to be necessary or advisable in the public interest.
The North Carolina Unit Agreement and Plan of Unitization is a legal document that establishes the framework for the development and operation of an unitized oil or gas field in North Carolina. It outlines the rights, responsibilities, and obligations of participating parties involved in the extraction of natural resources. This agreement ensures efficient management, conservation, and preservation of resources by coordinating operations within a defined unit area. Keyword: North Carolina Unit Agreement Types of North Carolina Unit Agreement and Plan of Unitization: 1. Conventional Unit Agreement: This type of agreement applies to oil and gas reservoirs that can be easily characterized and have a uniform production pattern. It outlines the designated area of the unit, unit boundaries, participating tracts, and working interests of each party involved. 2. Enhanced Recovery Unit Agreement: This agreement is applicable to oil or gas fields where enhanced recovery techniques, such as water flooding or gas injection, are employed to maximize resource production. It includes details regarding the injection process, designated injection wells, and the distribution of expenses among the parties involved. 3. Offshore Unit Agreement: This type of agreement applies to oil or gas fields located offshore North Carolina. It addresses specific considerations related to offshore drilling, such as environmental regulations, sea bed boundaries, and the delineation of ownership interests in the unit area. 4. Specialized Unit Agreement: This category encompasses agreements tailored to unique conditions or circumstances. For example, a specialized unit agreement may be required for unconventional resources like shale gas or coaled methane, which demand specific extraction techniques and economic considerations. The North Carolina Unit Agreement and Plan of Unitization acts as a vital document providing detailed guidelines, facilitating cooperation and coordination among the participating parties, and ensuring the efficient and optimal recovery of natural resources within the state.
