This Agreement is entered into, between the parties subscribing, ratifying, or consenting to it. The Parties are the owners of working, royalty, or other oil and gas interests in the Unit Area subject to this Agreement.
The Mineral Leasing Act of February 25, 1920, 41 Stat. 437, as amended, 30 U.S.C., Secs. 181 et seq., authorizes Federal lessees and their representatives to unite with each other, or jointly or separately with others, in collectively adopting and operating a cooperative or unit plan of development or operation of all or any part of any oil or gas pool, field, or like area, for the purposes of more properly conserving the natural resources whenever determined and certified by the Secretary of the Interior of the United States, to be necessary or advisable in the public interest.
The Wisconsin Unit Agreement and Plan of Unitization is a legal instrument commonly used in the oil and gas industry in Wisconsin to facilitate the efficient and coordinated extraction of resources from a shared reservoir or field. It aims to prevent waste, protect correlative rights, and maximize the recovery of valuable hydrocarbons. Under the Wisconsin Unit Agreement and Plan of Unitization, various stakeholders, including mineral owners, operators, and working interest owners, come together to form a unit or cooperative unit in order to jointly develop and produce the hydrocarbons. This agreement governs the rights, responsibilities, and operations of all parties involved. There are two main types of Wisconsin Unit Agreement and Plan of Unitization: 1. Voluntary Unitization: In this type, parties willingly enter into an agreement to pool their interests and collectively develop the reservoir. Typically, the unit is formed when a majority of working interest owners voluntarily agree to participate. Voluntary unitization helps streamline operations, reduce costs, and optimize the recovery of resources. 2. Compulsory Unitization: This type is initiated when a certain threshold of working interest owners does not voluntarily agree to participate in the unit. In such cases, the Wisconsin Department of Natural Resources (DNR) can order compulsory unitization under the authority of the state's applicable laws and regulations. This ensures fair and equitable development of the reservoir while preventing the waste of resources. The Wisconsin Unit Agreement and Plan of Unitization outlines important provisions, including the unit area boundaries, determination of allocated interests, allocation of costs, insurance requirements, and the rights and obligations of all parties involved. It also establishes a unit operating committee responsible for making operational and financial decisions in the best interest of the unit. Keywords: Wisconsin Unit Agreement, Plan of Unitization, oil and gas industry, efficient extraction, shared reservoir, prevent waste, protect correlative rights, maximize recovery, stakeholders, mineral owners, operators, working interest owners, unit or cooperative unit, jointly develop, voluntary unitization, streamline operations, compulsory unitization, Wisconsin Department of Natural Resources (DNR), fair and equitable development, provisions, unit area boundaries, allocated interests, allocation of costs, insurance requirements, unit operating committee.
