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 Ohio Unit Agreement and Plan of Unitization is a legal document that is used in the oil and gas industry to facilitate the efficient and coordinated extraction of oil and gas resources from a particular unit or field in the state of Ohio. This agreement is entered into by the parties involved in the extraction and production operations to ensure fair and equitable sharing of costs, risks, and the benefits associated with the development of the unitized area. The Ohio Unit Agreement and Plan of Unitization outline the specific terms and conditions under which the unit will be developed, operated, and governed. It establishes a framework for cooperation and collaboration among the various working interest owners, leaseholders, and operators in the unit, ensuring that all parties have a say in the decision-making process. There are different types of Ohio Unit Agreement and Plan of Unitization, depending on the specific requirements of the oil and gas field and the preferences of the parties involved. Some common types include: 1. Voluntary Unitization Agreement: This type of agreement is reached voluntarily by the working interest owners in the unit area. It is usually initiated when it becomes apparent that unitization will lead to increased efficiency, reduced costs, and optimal recovery of the oil and gas resources. 2. Compulsory Unitization Agreement: In some cases, unitization may be enforced by the state regulatory authority if it is in the best interest of the overall oil and gas resources of the state. This type of agreement is mandatory for all working interest owners in the unit area, regardless of their consent. 3. Enhanced Recovery Unitization Agreement: This type of unit agreement is focused on implementing enhanced oil recovery (FOR) techniques, such as water or gas injection, to maximize the recovery of hydrocarbons from the unit area. It includes specific provisions for the use of FOR technologies and the sharing of costs and benefits associated with these techniques. 4. Secondary Recovery Unitization Agreement: This type of unit agreement is similar to enhanced recovery unitization agreement but includes provisions for the utilization of secondary recovery methods, such as water flooding or gas cycling, to enhance the production rates of oil and gas from the unitized area. The Ohio Unit Agreement and Plan of Unitization are crucial in ensuring efficient and coherent development of oil and gas resources in Ohio. They provide a legal framework for the parties involved to work together towards maximizing recovery from the unit area while safeguarding their respective interests.
