PREPARING FOR THE AREA AND DEPTH MEETING

• Jurisdiction: United States

Federal Onshore Oil and Gas Pooling and Unitization
(Nov 2006)
CHAPTER 6A
PREPARING FOR THE AREA AND DEPTH MEETING
Paul S. Conner
President
UnitSource Incorporated
Denver, Colorado

PAUL S. CONNER, CPL

Paul S. Conner is President and Owner of UnitSource Incorporated, located in Northglenn, Colorado. For over 28 years, Paul has specialized and performed oil, gas and geothermal unitization consulting in the Rocky Mountain Region as well Alaska, California, Florida, Louisiana, Mississippi, Nevada, Oklahoma, Oregon, Texas and Washington State.

Paul was a Program Committee Member for the February, 1990, Rocky Mountain Mineral Law Institute on Pooling and Unitization II. He has also been a guest speaker in the Ninth and Eleventh Annual Conferences of the National Association of Lease and Title Analysts (September, 1994, June, 1996), the Annual Conference of the National Association of Division Order Analysts (September, 2002) and also the 41st Institute of the Rocky Mountain Mineral Law Foundation (Sun Valley Idaho, July 1995).

Paul is a Certified Professional Landman (CPL) and is active member of the American Association of Professional Landmen (AAPL) and was the Public Lands Chairman of the AAPL in 2000. In addition to the AAPL, Paul is active in the Montana (MAPL), Wyoming (WAPL), and Denver (DAPL) Associations of Petroleum Landmen and was DAPL Landman of the Year in 2000.

Table of Contents

1. Introduction

2. Short History

3. Purpose

3.1 Initial Guidelines

4. Preparation of the Application

4.1 The Area and Depth Application

4.2 Exhibits "A" and "B"

4.3 Geological Report

4.4 Geological Exhibits

5. Presentation of the Area and Depth Application

5.1 Preliminary Meetings

6. Conclusion

1. INTRODUCTION

Submittal to the appropriate Authorized Officer (AO) of an Application for Designation and Determination of Depth of Test Well (area and depth application) is usually the initial step in the unitization process. Key elements of the area and depth application must be followed by the unit proponent in order to assist the AO in making a smooth and timely decision in the designation of a proposed area as a "logical unit area."

2. SHORT HISTORY

In the beginning, cooperative unit plans were approved by the Secretary of the Department of the Interior in Washington, D.C. In 1946¹ the Mineral Leasing Act of 1920 was amended and granted unto the Secretary the ability to authorize a designate, including any person, committee, or state or federal office or agency to approve cooperative agreements. For many years thereafter, the Regional Supervisor of the Conservation Division of the United States Geological Survey Regional (USGS) had approval authority. It was during this time that many of the rules and guidelines were established for unitization and that are still in effect to this day.

By Secretarial Order 3071, administrative authority of unitization was assumed by the Minerals Management Service (MMS) in January of 1982. Shortly thereafter Secretarial Order 3087 (December, 1982) created a merger of the MMS (exclusive of Royalty Management and Offshore Operations) and the Bureau of Land Management (BLM). The BLM then decentralized the administrative authority of unit agreements to District and State offices.

3. PURPOSE

The purpose of the Area and Depth application is not only to initiate the unitization process but to also provide the AO with the appropriate data and science to justify designation of an area as a logical unit area.

3.1 INITIAL GUIDELINES

The unit proponent should be aware of the rules, regulations² and guidelines the BLM operates...