CHAPTER 5 FEDERAL & INDIAN COMMUNIT. AGREEMENT

• Jurisdiction: United States

Onshore Pooling and Unitization
(Jan 1997)
CHAPTER 5
FEDERAL & INDIAN COMMUNIT. AGREEMENT

DETERMINATION — APPROVAL — CERTIFICATION

Pursuant to the authority vested in the Secretary of the Interior under Section 17(j) of the Mineral Leasing Act of 1920, as amended (74 Stat. 784; 30 U.S.C. 226(j)), and delegated to the authorized officer of the Bureau of Land Management, I do hereby:

A. Determine that the Federal lease or leases as to the lands committed to the attached agreement cannot be independently developed and operated in conformity with the well-spacing program established for the field or area in which said lands are located, and that consummation and approval of the agreement will be in the public interest. Approval of this agreement does not warrant or certify that the operator thereof and other holders of operating rights hold legal or equitable title to those rights in the subject leases which are committed hereto.

B. Approve the attached communication agreement covering the Federal 1-28 Well in Uintah County, State of Utah, as to (natural gas and associated liquid hydrocarbons) (crude oil and associated natural gas) producible from the Wasatch-Mesa Verde formations. This approval will become invalid should the public interest requirements under Section 3105.2-3(e) are not met.

C. Certify and determine that the drilling, producing, rental, minimum royalty and royalty requirements of the Federal lease or leases committed to said agreement are hereby established, altered, changed, or revoked to conform with the terms and conditions of the agreement.

Approved: ______________________ ____________________

Branch of Fluid Minerals

Bureau of Land Management

Effective: _________________________

Agreement Contract No. _______________

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Contract No. _________________

COMMUNITIZATION AGREEMENT

(Federal and Indian Lands)

THIS AGREEMENT, entered into as of the date shown in Section 10 hereof by and between the parties subscribing, ratifying, or consenting hereto, such parties being hereinafter referred to as "parties hereto".

WITNESSETH:

WHEREAS, the act of February 25, 1920 (41 Stat. 437, 30 U.S.C. 226(j)), as amended and supplemented, authorizes communitization or drilling agreements communitizing or pooling a Federal oil and gas lease, or any portion thereof, with other lands, whether or not owned by the United States, when separate tracts under such Federal lease cannot be independently developed and operated in conformity with an established well-spacing program for the field or area and such communitization or pooling is determined to be in the public interest; and

WHEREAS, the acts of March 3, 1909 (35 Stat. 783, 25 U.S.C. 396), as amended, and May 11, 1938 (52 Stat. 347, 25 U.S.C. 396a and 396d), as amended, authorize the leasing of allotted and unallotted Indian reservation or lands owned by any individual Indian or any tribe, group, or band of Indians under Federal jurisdiction for mining purposes under such rules and regulations of the Secretary of the Interior as may be necessary to carry out the intentions of the acts; and

WHEREAS, 43 C.F.R. 211.21(b) and 212.24(c) authorize the Secretary to include Indian leases in cooperative or unit plans affecting leased lands; and

WHEREAS, the parties hereto own working, royalty, or other leasehold interests, or operating rights under the oil and gas leases and lands or fee mineral interests in lands subject to this agreement which cannot be independently developed and operated in conformity with the well-spacing program established for the field or area in which said lands are located; and

WHEREAS, the parties hereto desire to communitize and pool their respective mineral and leasehold interests in lands subject to this agreement for the purpose of developing and producing communitized substances in accordance with the terms and conditions of this agreement.

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NOW, THEREFORE, in consideration of the premises and the mutual advantages to the parties hereto, it is mutually covenanted and agreed by and between the parties hereto as follows:

1. Communitized Area. The lands covered by this agreement (hereinafter referred to as "communitized area") are described as follows:

Township 10 South, Range 20 East, S.L.M.

Section 28: All

(containing 640.0 acres, more or less)

This agreement shall include only the following formations underlying said lands and the crude oil and associated natural gas or natural gas and associated liquid hydrocarbons hereinafter referred to as "communitized substances," producible from such formations:

Wasatch — Mesa Verde formations being that interval below the top of the Wasatch formation defined as the stratigraphic equivalent of the 4,960 foot depth in the Dual Induction log run March 28, 1974, in the Conoco Home No. 1 Well located in the NW1/4NW1/4 of Section 13, Township 10 South, Range 20 East, S.L.M., down to the top of the Mancos formation defined as depth 10,400 feet in said Dual Induction Log

2. Acreage and Ownership. Attached hereto as Exhibit "A" and made a part of this agreement for all purposes is a plat of the communitized area. Attached hereto as Exhibit "B" is a schedule which shows the acreage, percentage, and ownership of oil and gas interests in all lands within the communitized area, and the authorization, if any, for communitizing or pooling any patented or fee lands within the communitized area.

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