Dissolution of Pooled Unit (By Unit Owners)
About this form
The Dissolution of Pooled Unit form allows unit owners to officially dissolve a pooled unit that was created to combine interests in oil and gas leases. This form is important as it clarifies that the purpose of pooling no longer exists, enabling owners to terminate the pooled unit and return to their individual lease agreements without the pooled obligations. Unlike other forms that establish pooling, this form is specifically for ending that arrangement.
What’s included in this form
- Identification of state and county where the leases are located.
- Names and addresses of all unit owners involved in the dissolution.
- Effective date of the dissolution.
- Details regarding the original pooled unit, including designation and date of formation.
- Declaration of dissolution by unit owners, specifying that leases are no longer pooled.
- Exhibits outlining descriptions of the included leases and lands.
Situations where this form applies
This form is used when all parties who jointly owned a pooled unit agree that the pooled arrangements are no longer needed. Scenarios may include changes in ownership, shifts in production viability, or legal requirements that prompt dissolution. If the unit was established for oil and gas production and the owners want to revert to managing their leases independently, this form is essential.
Who can use this document
- Current unit owners looking to dissolve a pooled unit.
- Parties involved in oil and gas leases that are part of the pooled unit.
- Individuals representing themselves in legal matters related to the dissolution of pooled resources.
Completing this form step by step
- Identify the state and county where the leases are located.
- List the names and addresses of all current unit owners.
- Specify the effective date for the dissolution of the pooled unit.
- Detail the designation or declaration that originally formed the unit.
- Include the descriptions of the leases and lands in the designated exhibits.
- Ensure all unit owners sign the form to affirm their agreement.
Is notarization required?
To make this form legally binding, it must be notarized. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session.
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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 unit ownersâ signatures, which may invalidate the form.
- Not specifying an effective date for the dissolution.
- Omitting the descriptions for the leases and lands in exhibits.
Why use this form online
- Convenient access to a legally vetted template anytime.
- Editability allows for customization to fit specific needs without legal jargon.
- Reliable resource backed by licensed attorneys, assuring correct usage.
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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.
