Unitization provides for the exploration and development of an entire geologic structure or area by a single operator so that drilling and production may proceed in the most efficient and economic manner. A unit agreement is submitted by an operator on behalf of the owners of oil and gas interests in a potential oil or gas reservoir, who wish to unite with one another. The agreement, upon approval by the authorized officer of the BLM, will facilitate the orderly and timely development of the oil and gas resources within the unit area. This consolidation of separate leasehold interests eliminates the need to drill protective wells along common boundaries between unitized leases and serves to maximize benefits through a continuing exploration and development program. The agreement designates one party as the operator to conduct all activities in the unit area and commits that party to diligently pursue an exploration program to develop the oil and gas potential of the area on behalf of all committed interests. Where Federal or Indian lands are to be committed to the unit agreement, approval by the Federal Government is required. Approval of the unit agreement does not, in itself, authorize any on-the-ground activities. All such activities are permitted on a case-by-case basis through the Application for Permit to Drill (APD). Our staff works closely with the Bureau of Land Management in developing Federal Units that are beneficial for our client. Please contact Monica Smith Griffin at firstname.lastname@example.org for more information.
A communitization agreement (CA) allows Bureau of Indian Affairs (BIA) and Bureau of Land Management (BLM) leases which do not include spacing or pooling clauses, to be included in larger oil and gas units. It is an agreement where all parties holding working interests in a spacing unit for a certain formation or formations, usually set by an authorized State agency, combine those lease interests into one unit. The agreement must be signed by or on behalf of all appropriate parties and filed prior to the expiration of the BIA/BLM leases involved in order to confer the benefits of the agreement upon such leases. Reagan Smith Energy Solutions, Inc. can prepare, circulate and submit your communitization agreements to the appropriate agency. Please contact Monica Smith Griffin at email@example.com.
State Regulatory Agencies
Reagan Smith Energy Solutions, Inc. is experienced in regulatory filings with state agencies for Storm Water Discharge Permits, unit formation documents, intents to drill, casing waivers, and completion reports. We work closely with the law firm of St. John, Griffin & Krieg, P.L.L.C. which specializes in location exceptions, spacing orders and pooling orders. Please contact Jennifer Krieg at firstname.lastname@example.org for more information. (see links page for list of state regulatory agencies).