This Designation is executed by the Operator and Working Interest Owners and filed of record for the purpose of evidencing their election to exercise the pooling authority granted to the lessees in the Leases, to give notice of the Unit being established, and to identify and describe the lands included in the Unit.
The Virgin Islands Designation of Pooled Unit and Declaration of Pooling For Oil Or Gas is a legal framework used to consolidate and streamline oil or gas exploration and production activities in the Virgin Islands. This designation allows multiple oil or gas leases or drilling units in the same geographical area to be merged into a single pooled unit, maximizing efficiency and optimizing resource development. Under the Virgin Islands Designation of Pooled Unit and Declaration of Pooling, different types of pooling arrangements can be established, including: 1. Conventional Pooling: Conventional pooling involves combining multiple oil or gas leases within a specific geographic area to form a pooled unit. The unit is typically established to enhance the efficiency of drilling operations, share costs, and enable uniform extraction practices. 2. Forced Pooling: Forced pooling, also known as compulsory pooling, may be implemented when one or more leaseholders do not consent to the pooling arrangement. In such cases, the Virgin Islands government has the authority to force those leaseholders into the pooled unit. This type of pooling ensures a fair distribution of resources and prevents a minority of uncooperative leaseholders from obstructing development. 3. Voluntary Pooling: Voluntary pooling occurs when all leaseholders willingly agree to consolidate their interests into a pooled unit. This type of pooling is often adopted to promote collaboration and joint resource development, especially when leaseholders recognize the benefits of working together to optimize production and minimize environmental impacts. When implementing the Virgin Islands Designation of Pooled Unit and Declaration of Pooling, various factors are considered. These include drainage areas, leasehold interests, regulatory compliance, well spacing, reservoir characteristics, and production plans. Proper documentation, such as unit agreements and declarations, are prepared to outline the rights, obligations, and responsibilities of all parties involved. Overall, the Virgin Islands Designation of Pooled Unit and Declaration of Pooling for Oil Or Gas is an effective tool to foster efficient oil or gas exploration and production operations. It ensures proper coordination and cooperation among leaseholders, reduces duplication of efforts, promotes environmental stewardship, and maximizes economic benefits for the Virgin Islands.
