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 Oregon Designation of Pooled Unit and Declaration of Pooling for Oil or Gas is a legal provision that allows multiple oil or gas leasehold interests to be consolidated into a larger tract of land referred to as a "pooled unit." This consolidation of interests helps streamline the exploration and production operations by allowing operators to efficiently exploit hydrocarbon reserves while minimizing wasteful duplication of efforts and costs. When it comes to different types of Oregon Designation of Pooled Unit and Declaration of Pooling for Oil or Gas, the following aspects should be taken into consideration: 1. Voluntary Pooling: Voluntary pooling occurs when individual leaseholders willingly agree to pool their leasehold interests to form a larger unit for exploration and production purposes. This type of pooling typically requires mutual consent among the involved parties. 2. Compulsory Pooling: Compulsory pooling, also known as forced pooling or mandatory pooling, is a legal process that allows an operator to pool oil or gas leasehold interests without the consent of all leaseholders. This is typically authorized by state law and ensures that all leaseholders benefit from the development of the hydrocarbon resources rather than having some holdouts preventing the development. 3. Pooling Unit Designation: The pooling unit designation refers to the formal declaration that outlines the specific area of land encompassing the pooled unit. It includes information such as legal descriptions, acreage, and geographical coordinates that define the boundaries of the consolidated tract. 4. Pooling Unit Operator: The pooling unit operator is the party responsible for overseeing the exploration, drilling, and production operations within the pooled unit. They act as the primary decision-maker and are responsible for adhering to regulatory requirements, coordinating with leaseholders, and maximizing the economic recovery of hydrocarbons. 5. Pooling Agreement: The pooling agreement is a legal document that outlines the terms and conditions of the pooling arrangement. It typically covers aspects such as cost-sharing, allocation of production, royalties, and operating responsibilities among the leaseholders within the pooled unit. The agreement creates a contractual framework to ensure the smooth operation and fair distribution of benefits. 6. Unitization: Unitization refers to a more comprehensive form of pooling, where leasehold interests not only combine but also unify the administrative, financial, and operational aspects of multiple leases or fields. Unitization agreements often involve a broader scope, encompassing neighboring properties and co-mingling of hydrocarbon resources, creating economies of scale and optimizing production efficiency. In summary, the Oregon Designation of Pooled Unit and Declaration of Pooling for Oil or Gas provides a mechanism for consolidating leasehold interests in order to optimize exploration and production activities. Whether it's voluntary or compulsory pooling, the pooling unit operator must ensure compliance with state regulations and work collaboratively with leaseholders to maximize the economic benefits from hydrocarbon resources.
