Supplemental Declaration of Pooled Unit
What is this form?
The Supplemental Declaration of Pooled Unit is a legal document used by a unit operator to amend an existing Declaration of Pooled Unit. This form is designed to include additional oil, gas, and mineral leases that cover lands within the defined Unit Area. It is important for operators to update the declaration as they acquire new leases to ensure all relevant interests are pooled together for royalty distributions.
Form components explained
- Identification of the unit operator and the original Declaration of Pooled Unit.
- Details of new oil, gas, and mineral leases added to the Unit as per Exhibit A.
- Amendment of the original Exhibit B with updated leasing information.
- Provisions for effective pooling and rights reserve for further amendments.
- Specification of the acreage and boundaries of the gas unit.
When to use this form
This form is utilized when a unit operator wishes to expand the existing pooled unit to incorporate additional leases recently acquired. It is essential to use this form when the operator wants to ensure that any new mineral rights or interests are legally recognized in the pooled agreement, which facilitates proper royalty distribution among stakeholders.
Who this form is for
This form is intended for:
- Unit operators managing pooled oil and gas units.
- Landowners or leaseholders looking to include their lease interests in a broader unit for production.
- Legal professionals assisting clients in modifying existing lease agreements.
How to prepare this document
- Identify the unit operatorâs name and the details of the original Declaration of Pooled Unit.
- List additional oil, gas, and mineral leases in the designated Exhibit A.
- Replace the original Exhibit B with the new plat of the unit configuration.
- Enter the total acreage covered by the pooled unit, as well as any specific boundaries.
- Ensure all parties sign the document and have it dated appropriately for record-keeping.
Does this form need to be notarized?
Notarization is required for this form to take effect. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session, available 24/7.
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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.
Avoid these common issues
- Failing to accurately describe new leases in Exhibit A.
- Not updating Exhibit B when the unit boundaries change.
- Neglecting to include necessary signatures or dates.
- Overlooking local requirements that may affect the filing of the supplemental declaration.
Why use this form online
- Convenient access to templates that save time compared to drafting from scratch.
- Editability and flexibility to customize the form based on specific needs.
- Reliability through professionally drafted language vetted by licensed attorneys.
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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.
