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.
Phoenix, Arizona is a famous city located in the southwestern United States. Known for its hot desert climate, vibrant culture, and stunning natural landscapes, Phoenix has become a prominent destination for tourists and a thriving hub for various industries, including the oil and gas sector. In Arizona, the Designation of Pooled Unit and Declaration of Pooling are essential processes in the oil and gas industry. These procedures involve combining multiple oil and gas leases or interests into a single unit for efficient extraction and management. A pooled unit allows operators to maximize resource utilization, enhance production efficiency, and streamline operations. There are different types of Designation of Pooled Unit and Declaration of Pooling For Oil Or Gas in Phoenix, Arizona, catering to the diverse geology and varying extraction methods. Some significant types include: 1. Geologic Pooled Unit: This type involves pooling oil or gas leases that share similar geological characteristics, such as formation type, structure, or stratigraphy. Geologically pooled units facilitate targeted exploration and extraction strategies for better resource recovery. 2. Directional Pooled Unit: In areas with complex subsurface conditions, directional drilling techniques are often employed to reach oil or gas deposits. Directional pooling allows operators to combine leases that can be accessed through the same deviated well bore, optimizing extraction efficiency. 3. Administrative Pooled Unit: Often used for administrative purposes, this type of pooling involves merging leases or interests that are in proximity to each other, making it easier to manage and operate from a logistical standpoint. Administrative pooling simplifies paperwork, regulatory compliance, and accounting processes. 4. Enhanced Recovery Pooled Unit: In some cases, reservoirs may require enhanced recovery methods like water flooding, gas injection, or other techniques to improve hydrocarbon extraction. Enhanced recovery pooled units bring together leases or interests that benefit from a shared enhanced recovery scheme, maximizing overall production rates. 5. Secondary Recovery Pooled Unit: When primary recovery methods are no longer effective, secondary recovery techniques are implemented to extract additional oil or gas. Secondary recovery pooled units consist of leases or interests that rely on secondary recovery methods like gas or water injection to boost production. It is important to note that the specific types and categories of pooled units and declarations may differ in different jurisdictions and depend on local regulations and geological considerations. However, regardless of the type, the Designation of Pooled Unit and Declaration of Pooling are crucial processes that aim to optimize oil and gas extraction efficiency, minimize waste, and promote responsible resource utilization.
