Supplemental Declaration of Pooled Unit
What this document covers
The Supplemental Declaration of Pooled Unit is a legal document used by a unit operator to amend an existing Declaration of Pooled Unit. This amendment allows the operator to include additional oil, gas, and mineral leases within a specified unit area, as outlined in the accompanying exhibits. Unlike the original declaration, this supplement provides a framework for incorporating new leases acquired after the initial declaration was made.
What’s included in this form
- Parties involved: Identification of the unit operator and the declaration date.
- Exhibit A: Details of the additional oil, gas, and mineral leases being included.
- Exhibit B: Updated plat showing the boundaries of the pooled unit.
- Supplement clauses: Provisions for future amendments and the effective duration of the declaration.
- Signature block: Acknowledgment by the unit operator confirming the amendment.
Situations where this form applies
This form is needed when a unit operator has obtained additional oil, gas, or mineral leases that they wish to include in an existing pooled unit. It is particularly useful when the operator aims to combine resources for effective management and revenue distribution among all parties involved in the unit area.
Who can use this document
This form is intended for:
- Unit operators seeking to amend an existing Declaration of Pooled Unit.
- Landowners with interests in oil, gas, or mineral leases.
- Attorneys or legal representatives managing mineral rights and lease agreements.
Steps to complete this form
- Identify the parties involved and the date the original Declaration of Pooled Unit was signed.
- List the additional oil, gas, and mineral leases in Exhibit A that are being added to the unit.
- Update Exhibit B with the latest plat depicting the unit boundaries.
- Specify the effective date for royalty distribution as per the new supplemental declaration.
- Obtain signatures from the unit operator and any necessary acknowledgments.
Is notarization required?
This form does not typically require notarization unless specified by local law. However, it is advisable to check state-specific requirements regarding notarization for legal validity.
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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
- Failing to include all relevant leases in Exhibit A.
- Not updating Exhibit B to reflect accurate unit boundaries.
- Overlooking the necessity for signatures or acknowledgments.
- Neglecting to specify the effective date for the amendment.
Why complete this form online
- Convenience of downloading and completing the form at your own pace.
- Editability to ensure all relevant details are accurately captured.
- Reliable templates drafted by licensed attorneys for legal 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.
