Common Contracts
2 similar Pooling Agreement contracts
INITIAL CONSIDERATIONS – CROSS CONVEYED POOLING AGREEMENTPooling Agreement • November 13th, 2020
The purpose of this agreement is to combine land to complete a spacing unit for the drilling and production of a petroleum substance by each party assigning an interest in its portion of the DSU to the other party. Careful consideration should be given to which form of pooling would best suit your situation. This is especially effective if pooling multiple zones. Also a Cross Conveyed Pooling Agreement could ensure your assets are more secure in case your pooling partner succumbs to bankruptcy. However, cross conveyance of interests can create issues such as infringement on AMI (Area of Mutual Interest) rights under an AMI agreement and creation of ROFR issues as well as priority issues regarding caveating of newly cross conveyed interests. If a horizontal well is being drilled in an area with single LSD spacing consider using a Horizontal Well Pooling Agreement. If this agreement is used to pool a freehold lease it is recommended a caveat be registered on the certificate of title of y
INITIAL CONSIDERATIONS –NON-CROSS CONVEYED POOLING AGREEMENTPooling Agreement • August 2nd, 2020
The purpose of this agreement is to combine land to complete a spacing unit for the drilling and production of a petroleum substance without the ownership of those rights changing in any way. Careful consideration should be given to which form of pooling would best suit your situation. The Non-Cross Conveyed pooling is often used when a Cross Conveyed Pooling should be utilized ie. if pooling multiple zones consider using a Cross Conveyed Pooling Agreement. Also a Cross Conveyed Pooling Agreement ensures your assets are more secure in case your pooling partner succumbs to bankruptcy. If a horizontal well is being drilled in an area with single LSD spacing consider using a Horizontal Well Pooling Agreement. If this agreement is used to pool a freehold lease it is recommended a caveat be registered on the certificate of title of your pooling partners lease.
