This form is used when the Operator desires to amend the Designation of Pooled Unit, as permitted by the terms of the Leases included in the Unit, to (increase/reduce) the size of the Unit so that, on the Effective Date of this Amendment, the Unit will consist of a specific number of acres of land, which lands are to be depicted on a plat attached to this Amendment.
The Washington Amendment to Pooled Unit Designation refers to a regulatory provision specific to the state of Washington that governs the allocation and designation of pooled units in the oil and gas industry. This amendment is aimed at ensuring fair and equitable distribution of resources and royalties among operators and landowners involved in the production of oil and gas within the state. The amendment serves as an important guideline for operators, landowners, and regulatory bodies in Washington to establish and maintain efficient and transparent processes when determining the size, boundaries, and rights associated with pooled units. Under this amendment, there are various types of pooled unit designations that can be established, each serving a specific purpose: 1. Production Pooled Unit Designation: This type of pooled unit designation is primarily focused on maximizing the production efficiency of oil and gas wells. Operators can consolidate multiple leases or tracts of land into a single pooled unit to increase the overall output and streamline operations. 2. Royalty Pooled Unit Designation: In certain cases, landowners may choose to combine their royalty interests from separate leases or tracts of land into a single pooled unit. This allows for a more straightforward management of royalty payments and simplifies accounting processes for both operators and landowners. 3. Spacing Pooled Unit Designation: The spacing pooled unit designation is particularly relevant in situations where oil and gas wells need to be spaced at designated intervals to prevent excessive drilling density, achieve optimal resource recovery, and prevent depletion of reservoirs. This type of designation helps regulate the spacing requirements and ensures compliance with regulations. 4. Pooled Unit Redesignation: Washington state also recognizes the need for flexibility in unit designations, allowing for amendments or modifications to existing pooled unit boundaries or structure. This helps accommodate changes in drilling techniques, advances in technology, or other operational needs over time. With the Washington Amendment to Pooled Unit Designation in place, the state's oil and gas industry can operate in a fair and orderly manner, striking a balance between the needs of operators and landowners while safeguarding the environment and the state's natural resources. Keywords: Washington, amendment, pooled unit, designation, oil and gas industry, resources, royalties, operators, landowners, production, efficiency, leases, tracts, accounting, spacing, drilling density, reservoir, compliance, regulatory bodies, boundaries, technology.
