This Designation is executed by the Operator and Working Interest Owners and filed of record for the purpose of evidencing their election to exercise the pooling authority granted to the lessees in the Leases, to give notice of the Unit being established, and to identify and describe the lands included in the Unit.
The New Jersey Designation of Pooled Unit and Declaration of Pooling for Oil or Gas is a legal document commonly used in oil and gas extraction activities in the state of New Jersey. It is designed to regulate the pooling of oil or gas interests, allowing multiple owners or operators to combine their leases or interests into a single unit for efficient and coordinated extraction. The New Jersey Designation of Pooled Unit and Declaration of Pooling serves as a binding agreement among the parties involved, ensuring fair distribution of profits and costs related to the drilling and production of oil or gas. This document establishes the rules and rights governing the pooled unit, including the allocation of production royalties, liability sharing, and operational responsibilities. Keywords: New Jersey, Designation of Pooled Unit, Declaration of Pooling, Oil, Gas, extraction, pooling, leases, interests, unit, efficient, coordination, profits, costs, drilling, production, royalties, liability. Different types of New Jersey Designation of Pooled Unit and Declaration of Pooling for Oil or Gas may include: 1. Voluntary Pooling: This type of pooling occurs when landowners voluntarily agree to combine their lease interests into a single unit to facilitate the extraction and production of oil or gas. This usually involves negotiation and agreement among the parties, ensuring mutual benefit and fair distribution of profits. 2. Compulsory Pooling: Also known as forced pooling or compulsory integration, this type of pooling is initiated by an operator or company seeking to extract oil or gas from a reservoir that spans multiple properties. It involves a legal process that allows the operator to pool the interests of non-consenting landowners into a single unit, ensuring efficient resource extraction even if some owners are unwilling to cooperate. 3. Statutory Pooling: Statutory pooling refers to pooling arrangements governed by specific laws and regulations issued by the state of New Jersey. These laws define the procedures and requirements for pooling and provide guidelines for operators, landowners, and affected parties. Statutory pooling is typically implemented to ensure fair and orderly development of oil or gas resources while protecting the rights and interests of all parties involved. In conclusion, the New Jersey Designation of Pooled Unit and Declaration of Pooling for Oil or Gas is a vital legal document that regulates the pooling of oil or gas interests in the state. It enables efficient coordination and resource extraction, protects the rights of landowners, and ensures fair distribution of profits and costs. Different types of pooling, such as voluntary, compulsory, and statutory pooling, may be employed depending on the specific circumstances and objectives involved.
