South Carolina Separate Leases on Multiple Tracts of Lands Described in one Oil and Gas Lease

State:
Multi-State
Control #:
US-OG-823
Format:
Word; 
Rich Text
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Description

This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.

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FAQ

The process whereby an oil or gas reservoir straddling multiple licence areas is jointly developed by the holders of each licence. A key principle of unitisation is that the straddling reservoir is physically developed as though the boundary between the licence areas does not exist.

Unitization is a process in which two or more operating companies combine their interests in a single unitized area, allowing them to operate their wells together. Texas' standards include determining the boundaries of the unitized area and how production will be divided amongst the participating companies.

In a few words, a pooling clause is written into a lease. This oil and gas clause allows the leased premises to be combined with other lands to form a single drilling unit. It's not uncommon for there to be a pool of oil or gas under numerous parcels of land.

Unitization is the act of consolidating multiple smaller units into a larger unit for improved warehouse efficiency, quicker packaging and arranging, and more efficient handling and transportation.

The declaration shows the boundaries of the pooling unit and identifies all the landowners and amount of property each landowner actually has in the unit.

The Pugh Clause ? A clause in the Oil and Gas Lease which modifies usual pooling language to provide that drilling operations on or production from a pooled unit will not preserve the whole lease.

The goal of unitisation is to ensure that different block owners sharing a common accumulation develop the field as a single unit. Licence holders sharing a common field will enter into a unitisation agreement, which will firstly establish the percentage interests in the unit.

Unitisation enables the exploitation, as a single unit, of Oil and Gas deposits in fields/reservoirs straddling two or more parties' mutual concession boundaries, under a single authority notwithstanding the respective permits or contract areas different contractual terms.

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South Carolina Separate Leases on Multiple Tracts of Lands Described in one Oil and Gas Lease