The Leasing of Federal Lands for Fossil Fuels Production

By Stephen L. McDonald | Go to book overview

believe, be free to develop and operate their reservoirs so as to maximize their value. No issue of compulsion, conflict of operator interest, or managerial cost arises here.


APPENDIX: UNOFFICIAL FORM FOR A UNIT AGREEMENT COVERING AN EXPLORATORY UNIT ON THE OUTER CONTINENTAL SHELF, UNDER CONSIDERATION BY THE U.S. GEOLOGICAL SURVEY

UNIT AGREEMENT FOR THE DEVELOPMENT AND OPERATION OF THE _____ UNIT AREA OUTER CONTINENTAL SHELF GULF OF MEXICO--OFFSHORE_____

This Agreement, entered into as of the _____ day of _____, 19_____, by and between the parties subscribing, ratifying or consenting hereto, and herein referred to as the "parties hereto,"

WITNESSETH:

WHEREAS, the parties hereto are the owners of working or other oil and gas interests in the Unit Area subject to this agreement; and

WHEREAS, the Outer Continental Shelf Lands Act of August 7, 1953, 67 Stat. 462; 43 U.S.C. 1331 et seq., hereinafter referred to as the "Act," authorizes the Secretary of the Interior, in the interest of conservation, to provide for unitization, pooling, and drilling agreements; and

WHEREAS, the rules and regulations prescribed by the Secretary of the Interior pursuant to the authority granted by the Act governing the conduct of mineral operations and development in the Outer Continental Shelf provide that such agreements may be initiated by lessees or, in the interest of conservation, may be required by the Director, U.S. Geological Survey, hereinafter referred to as the "Director", of his duly authorized representative; and

WHEREAS, the parties hereto hold sufficient interest in the _____ Unit Area covering the land hereinafter described to give reasonably effective control of operations therein; and

WHEREAS, it is deemed in the interest of conservation to unitize said interests in the Unit Area under the provisions of Section 5 (a) (1) of the Act with the consent of the Secretary of the Interior or his duly authorized representative for the purpose of exploration, development, and operation of oil and gas leases.

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