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 Wyoming Unit Agreement and Plan of Unitization is a legal document that establishes the framework for the development and operation of oil and gas reservoirs in the state of Wyoming. This agreement outlines how the participating parties will work together to maximize production and efficiently manage the resources within a specific designated area. One type of Wyoming Unit Agreement and Plan of Unitization is the Voluntary Unit Agreement. In this type, operators of multiple oil and gas leases within a defined geographic area agree to combine their interests and jointly develop and operate the unitized reservoir. By pooling their resources and expertise, operators can optimize production and reduce costs. This agreement usually requires the consent of all leaseholders within the proposed unit area. Another type is the Compulsory Unit Agreement, which is enforced by the Wyoming Oil and Gas Conservation Commission (WOG CC) when voluntary agreement among operators is not attainable. The WOG CC has the authority to establish a unit area, allocate production rights, and specify drilling and operating practices to ensure the orderly development of the reservoir. This agreement is typically undertaken when it is in the best interest of the state and leaseholders to develop the reservoir in a coordinated manner. The Wyoming Unit Agreement and Plan of Unitization provides a framework for the determination of responsibilities, rights, and liabilities among participating parties. It establishes the unit area boundaries, defines the participating working interests, and outlines the allocation and distribution of costs, expenses, and proceeds from production among the leaseholders. Moreover, this agreement outlines the procedures for drilling, completing, and operating wells within the unit area, including stipulations for well spacing, location, and construction. Furthermore, it may address environmental considerations, surface access rights, administrative matters, and provisions for dispute resolution. Overall, the Wyoming Unit Agreement and Plan of Unitization serves as a critical tool to promote efficient and coordinated development of oil and gas reservoirs within the state. It protects the interests of all parties involved while ensuring the responsible and sustainable extraction of resources.
