In some jurisdictions (including Texas) an overriding royalty interest owners interest cannot be pooled without the overriding royalty owners consent. This form provides for the overriding royalty interest owner to ratify an existing pooling or unitization to allow the overriding royalty interest to participate in production
New Mexico Ratification and Consent to Pooling and/or Unitization by Overriding Royalty Interest Owner is a legal document that outlines the agreement and authorization given by the overriding royalty interest owner to combine their interests with other mineral owners in a defined area or unit within the state of New Mexico. This agreement allows for the efficient development and extraction of oil, gas, or other natural resources from a common reservoir. The purpose of the New Mexico Ratification and Consent to Pooling and/or Unitization is to negotiate terms and conditions that are mutually beneficial to all parties involved. It helps in streamlining operations, reducing costs, maximizing production, and ensuring fair distribution of royalties among the overriding royalty interest owners. Keywords: New Mexico, Ratification and Consent, Pooling, Unitization, Overriding Royalty Interest Owner, legal document, mineral owners, efficient development, extraction, natural resources, common reservoir, negotiations, terms and conditions, operations, costs, production, royalties. Different types of New Mexico Ratification and Consent to Pooling and/or Unitization by Overriding Royalty Interest Owner may include: 1. Voluntary Pooling and Unitization: This type involves overriding royalty interest owners willingly agreeing to combine their interests in a unit or pooled area to promote efficient resource extraction, optimize production, and enhance profitability. 2. Compulsory Pooling and Unitization: In cases where some overriding royalty interest owners do not consent to pooling and unitization voluntarily, the New Mexico state laws may permit compulsory pooling and unitization. This allows the majority interest owners to compel the minority owners to participate in the pooling and unitization agreement. 3. Limited Pooling and Unitization: This type may restrict the pooling and unitization agreement to specific defined areas or certain formations within the mineral rights, allowing overriding royalty interest owners to retain their interests in other areas or formations. 4. Modified Pooling and Unitization: In certain instances, overriding royalty interest owners may negotiate modifications to the standard pooling and unitization agreement. These modifications can include adjustments to royalty rates, working interests, or other terms to better suit the specific circumstances or interests of the parties involved. It is important for all overriding royalty interest owners to carefully review and understand the terms, obligations, and benefits associated with the New Mexico Ratification and Consent to Pooling and/or Unitization before signing the agreement. Seeking legal advice and conducting due diligence can ensure fair representation of the overriding royalty interest owners' rights and interests.
