This form is an agreement that is used by the Parties that are the owners of working, royalty, or other oil and gas interests in the unit area subject to this Agreement. It is pursuant to the Mineral Leasing Act of February 25, 1920, as amended, 30 U.S.C. Sec. 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 under a unit plan of development or operations of all or any part of any oil and gas pool, field, or like area, for the purpose of more properly conserving the natural resources whenever determined and certified by the Secretary of the Interior to be necessary or advisable in the public interest.
The New Mexico Exploratory Unit Agreement is a legal document that outlines the arrangements and regulations surrounding the exploration and development of oil and gas resources in the state of New Mexico, United States. It is designed to facilitate the efficient and sustainable utilization of these resources while ensuring compliance with environmental and safety standards. The agreement provides a framework for cooperation between multiple oil and gas companies that wish to explore a specific geographic area in New Mexico. When an exploratory unit agreement is established, participating companies collectively share the costs, risks, and benefits associated with exploring and developing the oil and gas reserves within the defined unit. There are typically two types of New Mexico Exploratory Unit Agreements: 1. Cooperative Exploratory Unit Agreement: This type of agreement is formed when multiple companies agree to pool their resources and expertise to explore a specific geographic area in New Mexico. The agreement establishes the rights and responsibilities of each participating company, outlining how they will collectively work towards discovering and developing potential oil and gas reserves. 2. Unitization Exploratory Unit Agreement: This type of agreement is formed when an existing oil and gas lease or field is divided into smaller units and allocated to different companies. Unitization agreements are often used when a single reservoir extends beyond the boundaries of existing leases, requiring coordination between multiple operators to maximize recovery. This agreement establishes the rules and regulations for effectively exploiting the shared reservoir, ensuring equitable distribution of production and operational costs. Both types of New Mexico Exploratory Unit Agreements aim to minimize waste, avoid unnecessary duplication of effort, and prevent conflicts among oil and gas companies operating within the same geographic area. These agreements also promote efficient resource management and help preserve the environment by ensuring compliance with state and federal regulations. By establishing clear guidelines, the New Mexico Exploratory Unit Agreement encourages collaboration and fosters effective utilization of oil and gas resources, benefiting both the participating companies and the state's economy as a whole.
