CHAPTER 18 FORMULATING A FEDERAL OR INDIAN EXPLORATORY UNIT AGREEMENT

• Jurisdiction: United States

Federal Onshore Oil & Gas Pooling & Unitization - part 2
(Oct 2014)
CHAPTER 18
FORMULATING A FEDERAL OR INDIAN EXPLORATORY UNIT AGREEMENT

[Page 237]

Suggested Procedures for Formulating a Federal or Indian Exploratory Unit Agreement

Address application and unit agreement papers to the Chief, Reservoir Management and Operations Section. Review and processing of the proposal will be facilitated if the following suggestions are observed:

1. Application letter from operator.

a. Should accurately define the proposed unit area by reference to an accompanying plat and legal descriptions itemized by unit tracts of all lands in the proposed unit area (exhibits A and B (Page 1, 2, 3)).

b. List in sequence the serial numbers of all federal leases and applications, and Indian leases.

c. In the event geological and geophysical data and discussions are to be confidential, the application should 50 state and the geologic report should be a separate report supporting the application for designation of a unit area.

d. Cite the deepest formation which the proponent expects to test, the projected depth that the initial test well(s) must reach to adequately test that formation, and the number of initial well(s) to be required with proposed location(s).

2. Geologic report.

The geologic report should include:

a. A plat on the public land survey base showing the proposed unit boundary, detailed geological, structural, and stratigraphic conditions pertinent to the proposed unit area, and the strike and throw of faults. Said plat shall show all wells drilled in the unit area and immediate vicinity thereof, including Status, depth, and lowest formation penetrated. Structural contours, stratigraphic conditions, etc., should be shown well beyond unit boundary, when possible.

b. Appropriate cross-sections and stratigraphic columns, identifying prospectively productive formations and indicating expected depths.

c. Pertinent geophysical interpretations

d. The geologic basis for selecting the boundary of unit area, such as, closing contour, fault, or pinch-out.

e. A brief discussion of the unit area including: (i) the location of the prospect geographically and physiographically; (ii) geologic factors including Structure and stratigraphy as pertinent to the proposed unit area; and (iii) the location of existing wells with emphasis as to why the prospect has not been evaluated by these tests.

3. Land Ownership

Land ownership plat, Exhibit A.

a. The specified...