Dissolution of Pooled Unit
About this form
The Dissolution of Pooled Unit form is a legal document used to officially dissolve a pooled unit in the oil and gas industry. It serves to indicate that the pooling of oil and gas leases for a specific land area is no longer in effect, particularly when the designated well(s) have ceased production and no further operations are ongoing. This form is crucial for providing legal notice to interested parties about the termination of the unitâs operational status, differentiating it from other forms that may pertain to lease agreements or operational changes.
Main sections of this form
- Declarant's name and address
- Effective date of the dissolution
- Details of the instrument granting unit designation, including recording information
- Confirmation that the well(s) are no longer producing
- Statement on the cessation of operations
- Notice that the unit is deemed dissolved as of the effective date
When this form is needed
This form should be used when a pooled unit for oil and gas leases is no longer producing viable resources and when there are no ongoing operations that would keep the leases active. It is necessary to file this dissolution when the operational purpose of the unit has ceased, ensuring legal clarity and record-keeping in the relevant county jurisdiction.
Intended users of this form
- Operators of oil and gas wells within a pooled unit
- Landowners who are part of the pooled unit agreements
- Legal representatives managing dissolution processes
- Anyone needing to provide formal notice of the unitâs dissolution to involved parties
Steps to complete this form
- Enter the declarant's name and address at the top of the form.
- Fill in the effective date of the dissolution.
- Provide details of the designation of unit, including date, volume, and page number.
- Confirm that the well(s) are no longer producing resources.
- Include a statement regarding the cessation of operations.
- Sign the declaration to finalize and file the document appropriately.
Notarization requirements for this form
Notarization is not commonly needed for this form. However, certain documents or local rules may make it necessary. Our notarization service, powered by Notarize, allows you to finalize it securely online anytime, day or night.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Forgetting to enter the correct effective date.
- Not including the full details of the designation of unit.
- Failing to sign the form properly.
- Omitting confirmation that the well(s) are no longer producing.
Why use this form online
- Convenience of downloading and completing the form at your own pace.
- Editability allows you to make changes as needed.
- Access to templates drafted by licensed attorneys, ensuring reliability.
- Easy record-keeping by filing digitally if required by your jurisdiction.
Quick recap
- The Dissolution of Pooled Unit form is essential for officially ending pooled unit operations.
- Accurate completion is vital to avoid legal issues and record discrepancies.
- Consult state-specific rules to ensure proper filing and compliance.
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FAQ
It also records a "Declaration of Pooling" or similarly named document in the land records office at the local Courthouse. 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.
Pooling is the combination of all or portions of multiple oil and gas leases to form a unit for the drilling of a single oil and/or gas well.The oil and gas company can lease these under separate leases and separate terms and then pool these parcels to drill the well.
Net revenue is the amount that is shared among the property owners. To determine net revenue interest, multiply the royalty interest by the owner's shared interest. For example, if you have a 5/16 royalty, your net royalty interest would be 25% multiplied by 5/16, which equals 7.8125% calculated to four decimal places.
As noted above, while pooling focuses on efficiently combining lands for the purpose of obtaining a drilling permit to drill a single well, unitization focuses on the combination of interests covering a larger area to facilitate development of all or part of a common source of supply (i.e. a field/reservoir).
The specific provisions of the laws vary from state to state, but drillers are generally allowed to extract minerals from a large area or "pool"--in most states a minimum of 640 acres--if leases have been negotiated for a certain percentage of that land. The company can then harvest gas from the entire area.
Pooling Clause: Joining the Leased Land with Other Land The area formed is called a pool or sometimes a pooled unit. Pooling permits the lessee to prevent waste by avoiding unnecessary drilling and to protect the correlative rights of the mineral owners in the common reservoir.
Use this formula to calculate your decimal share of royalties from the producing well: (Mineral Interest Share) times (Royalty Rate) = (Royalty Share Decimal). Example 1: (1/3 x 100% mineral interest) times (1/8 Royalty Rate) = 1/3 x 1/8 = 1/24 = 0.04166667 RI.
The oil and gas leases being used by companies leasing in the Marcellus shale include a provision that allows the gas company to combine, or pool, the landowner's acreage with property from other leased landowners to form a production unit.
Once a Pooling Order is entered, you will receive a copy of the Order, which will state your options as an owner of an interest in the unit. Typically, the Order will afford you a number of options of a cash bonus and royalty payments on production based on the fair market value of your interest.
Forced Pooling (sometimes called Statutory or Compulsory Pooling) is a legal mechanism that allows oil and gas operators to drill wells when they are unable to get 100% of the mineral interests to commit to support the drilling of a well.
