APPLICATION FOR THE FORMATION OF THE COSMOPOLITAN UNIT Sample Clauses

APPLICATION FOR THE FORMATION OF THE COSMOPOLITAN UNIT. Xxxxxxxx submitted the Application on August 10, 2001, and simultaneously paid the $5,000.00 unit application filing fee, in accordance with 11 AAC 83.306 and 11 AAC 05.010(a)(10)(D), respectively. The Application includes: the Agreement; Exhibit A legally describing the proposed unit area, its leases, and ownership interests; Exhibit B, a map of the proposed unit; and the proposed initial Plan of Exploration (Initial XXX). The Application also includes the Cosmopolitan Unit Operating Agreement; technical data in support of the Application; and an affidavit that all proper parties were invited to join the Agreement. The Agreement is based on the McCovey Unit Agreement, which was used as the State of Alaska’s model form (Model Form). The McCovey Unit Agreement was recently approved by the DNR and MMS for a joint state-federal unit in the Beaufort Sea of Alaska. The Model Form was designed using the State of Alaska Multiple Royalty Owner model unit form dated September 1998, and changed extensively to meet the regulatory requirements of both the DNR and MMS. Minor modifications were proposed to the Model Form and these are detailed in Attachment 5 of the Application. Only portions of four of the seven State of Alaska leases are committed to the Cosmopolitan Unit. The four leases are ADLs 387102 (Tract 1), 384404 (Tract 4), 389525 (Tract 8), and 389526 (Tract 9). Under 11 AAC 83.373 (a), these commitments constitute severances of the leases. The Agreement requires the unit operator, Xxxxxxxx, to file unit plans describing the activities planned for the proposed unit area. Xxxxxxxx must consider how it can best develop the resource underlying the entire unit area, without regard to internal lease boundaries. Xxxxxxxx filed a proposed three-year Initial XXX. The Initial XXX is discussed further in Section III. A. 2. The Agreement defines the relationship between the unit operator, the working interest owners (WIOs), and the royalty owners. It describes the rights and responsibilities, in addition to those imposed by state law and the leases, of the unit operator, WIOs, and royalty owners for exploration and development of the unit area. DNR may approve the Agreement if the available data suggests that the unit area covers one or more geologic formations that should be developed under a DNR approved plan, and the proposed unit meets the other statutory and regulatory criteria. The Division of Oil and Gas (Division) determined that the Application was complete an...
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