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 Ohio Designation of Pooled Unit and Declaration of Pooling for Oil or Gas is an important legal document that plays a crucial role in the oil and gas industry. This document outlines the process of pooling multiple parcels of land or leases together to create a larger drilling unit. By combining these smaller tracts, operators can efficiently explore and extract oil or gas resources from the pooled unit. The purpose of the Ohio Designation of Pooled Unit and Declaration of Pooling for Oil or Gas is to consolidate ownership and streamline operations. This is particularly valuable when individual landowners don't have enough acreage to drill economically or when the oil or gas reservoir extends across multiple properties. There are various types of Ohio Designation of Pooled Unit and Declaration of Pooling for Oil or Gas, including: 1. Voluntary Pooling: This occurs when landowners voluntarily initiate the pooling process. These landowners agree to combine their respective interests into a larger unit, typically done to enhance exploration and production activities. 2. Compulsory Pooling: In some cases, a landowner may not consent to pooling, but the operator can apply for forced pooling through the Ohio Department of Natural Resources (ODOR). Compulsory pooling allows operators to include unwilling landowners in the pooled unit if it is determined to be in the best interest of resource conservation and maximum recovery. 3. Combination Pooling: Combination pooling involves the consolidation of both voluntary and compulsory pooled units. This typically occurs when adjacent lands are voluntarily pooled by some landowners while others are forced to join through compulsory pooling. The Ohio Designation of Pooled Unit and Declaration of Pooling for Oil or Gas must adhere to specific guidelines set by the ODOR. These guidelines ensure fairness for all involved parties and provide a framework for the operation and development of the pooled unit. This includes regulations pertaining to royalty distributions, unit operations, and the protection of the environment. Operators and landowners must carefully review and understand the terms within the Ohio Designation of Pooled Unit and Declaration of Pooling for Oil or Gas before entering into any agreements. Legal counsel is often recommended ensuring compliance with state laws, protect the rights of all parties, and establish clear expectations for all stakeholders involved. In summary, the Ohio Designation of Pooled Unit and Declaration of Pooling for Oil or Gas is a critical document that allows operators to combine smaller tracts of land into a more viable drilling unit. With various types of pooling, including voluntary, compulsory, and combination pooling, this document sets the groundwork for efficient and productive oil or gas exploration and extraction in Ohio.
