In some jurisdictions (including Texas) an overriding royalty interest owners interest cannot be pooled without the overriding royalty owners consent. This form provides for the overriding royalty interest owner to ratify an existing pooling or unitization to allow the overriding royalty interest to participate in production
Washington Ratification and Consent to Pooling and/or Unitization by Overriding Royalty Interest Owner is a legal agreement that allows the owner of an overriding royalty interest in an oil or gas property to ratify and consent to pooling and/or unitization activities conducted by the operator of the property. This agreement serves to ensure the proper unitization and efficient development of oil and gas resources. Pooling refers to combining multiple oil and gas leases or tracts of land into a larger unit to enable the efficient extraction of hydrocarbons. Unitization, on the other hand, involves the integration of multiple leases or tracts of land into a single unit to optimize the production and management of oil and gas reservoirs. In Washington, there are two main types of Ratification and Consent to Pooling and/or Unitization by Overriding Royalty Interest Owner: 1. Voluntary Ratification and Consent: This type of agreement occurs when the overriding royalty interest owner willingly agrees to the pooling and/or unitization activities proposed by the operator. The owner acknowledges the benefits of unitized operations, such as improved recovery rates and reduced costs, and provides their consent to be part of the unit. 2. Compulsory Ratification and Consent: In some cases, the operator may seek compulsory ratification and consent from the overriding royalty interest owner to proceed with pooling and/or unitization. This occurs when the owner refuses to voluntarily participate or refuses to agree on reasonable terms. The operator may then apply to the Washington State Department of Natural Resources for compulsory ratification and consent. The Washington Ratification and Consent to Pooling and/or Unitization by Overriding Royalty Interest Owner agreement typically includes provisions such as the allocation of costs and expenses, sharing of production revenues, and the rights and obligations of the overriding royalty interest owner within the unitized operations. It sets out the terms under which the owner's interest will be included in the unit and how they will be compensated. Unitization and pooling activities have become crucial in the oil and gas industry to maximize resource recovery and minimize waste. Washington Ratification and Consent to Pooling and/or Unitization by Overriding Royalty Interest Owner agreements play a vital role in facilitating cooperation and collaboration among stakeholders, ensuring efficient exploration and production activities, and optimizing the economic value of oil and gas resources in Washington State.
