Common use of The Prevention of Economic and Physical Waste Clause in Contracts

The Prevention of Economic and Physical Waste. Formation of the unit will prevent economic and physical waste because the unit operator must have an equitable cost sharing formula and a coordinated development plan. An equitable cost- sharing agreement promotes efficient development of common surface facilities and operating strategies. An equitable cost-sharing agreement, and an acceptable unit operator, allows the working interest owners in the unit to rationally decide well spacing requirements, injection strategies, and the proper joint-use of surface facilities. Unitization prevents economic and physical waste by eliminating redundant expenditures for a given level of production, and by avoiding loss of ultimate recovery by adopting a unified reservoir management plan. Unitized operations greatly improve development of reservoirs beneath leases that may have variable productivity. Marginally economic reserves, which otherwise would not be produced on a lease-by-lease basis, often can be produced through unitized operations in combination with more productive leases. Facility consolidation saves capital and promotes better reservoir management for all working interest owners. Pressure maintenance and secondary recovery procedures are much more predictable and attainable through joint, unitized efforts than would otherwise be possible. In combination, these factors allow less profitable areas of a reservoir to be developed and produced in the interest of all parties, including the state. The overall costs of exploring and developing the McCovey Unit leases would be higher on a lease-by-lease basis than it will be under the terms of unitization. Investments in drilling and facilities costs will be minimized as a consequence of eliminating the requirement for multiple sites within the unit area. Locations of individual xxxxx and surface facilities will be selected to optimize recovery of the resources and to minimize costs with due regard for environmental considerations. Reducing costs through unitized operations will expedite development of any reserves discovered and will promote greater ultimate recovery of any oil and gas in the unit area. This will accelerate and extend the state’s income stream from severance taxes and royalties. The revenues to the lessee may be reinvested in new exploration and development in the state.

The Prevention of Economic and Physical Waste. Formation of the unit will prevent economic and physical waste because the unit operator must have an equitable a cost sharing formula agreement and a coordinated development exploration plan. An equitable cost- A cost-sharing agreement promotes efficient development of common surface facilities and operating strategies. An equitable With an approved unit operator and cost-sharing agreementagreement in place, and an acceptable unit operator, allows the working interest owners in the unit to can rationally decide well spacing requirements, injection strategiesplans, and the proper joint-use of surface facilities. Unitization prevents economic and physical waste by eliminating redundant expenditures for a given level of production, and by avoiding loss of ultimate recovery by adopting a unified reservoir management plan. Unitized operations greatly improve development of reservoirs beneath leases that may have variable or unknown productivity. Marginally economic reserves, which otherwise would not be produced on a lease-by-lease basis, often can be produced through unitized operations in combination with more productive leases. Facility consolidation saves lowers capital costs and promotes better optimal reservoir management for all working interest owners. Pressure maintenance and secondary recovery procedures are much more predictable easier to design and attainable achieve through joint, unitized efforts than would otherwise be possible. In combination, these factors allow less profitable areas of a reservoir to be developed and produced in the interest of all parties, including the state. The overall costs total cost of exploring and developing the McCovey Slugger Unit leases would be higher on a lease-by-lease basis than it will would be under the terms of unitizationunitization terms. Investments in drilling Drilling and facilities facility investment costs will be minimized as a consequence of eliminating the requirement a need for multiple numerous sites within the unit area. Locations of The unit operator will select locations for individual xxxxx and surface facilities will be selected that optimize ultimate oil and gas recovery, while minimizing or avoiding adverse impacts to optimize recovery of the resources and to minimize costs with due regard for environmental considerationsenvironment. Reducing costs and environmental impacts through unitized operations will expedite development of any reserves discovered and will promote greater ultimate recovery of any oil and gas in from the unit area. This will accelerate increase and extend the state’s income stream from severance production taxes and royalties. The revenues to the lessee lessees and unit operator may be reinvested in new exploration and development in the state. Unitization means reduced costs and increased benefits to all interested parties. It benefits the local and state economy, and provides revenues to the state’s general, school, constitutional budget reserve, and permanent funds.

The Prevention of Economic and Physical Waste. Formation of the The unit will prevent economic and physical waste because the unit operator must have an equitable a cost sharing formula and agreement, a coordinated development exploration plan, and if a commercial discovery is made, a comprehensive reservoir depletion model. An equitable cost- A cost-sharing agreement promotes efficient development of common surface facilities and operating strategies. An equitable With a cost-sharing agreementagreement and reservoir model in place, and an acceptable unit operator, allows the working interest owners WIOs in the unit to can rationally decide well spacing requirements, injection strategiesplans, and the proper joint-use of surface facilities. Unitization prevents economic and physical waste by eliminating redundant expenditures for a given level of production, and by avoiding loss of ultimate recovery by adopting with the adoption of a unified reservoir management plan. Unitized operations greatly improve development of reservoirs beneath leases that may have variable or unknown productivity. Marginally economic reserves, which otherwise would not be produced on a lease-by-lease basis, often can be produced through unitized operations in combination with more productive leases. Facility consolidation saves lowers capital costs and promotes better optimal reservoir management for all working interest ownersWIOs. Pressure maintenance and secondary recovery procedures are much more predictable easier to design and attainable achieve through joint, unitized efforts than would otherwise be possible. In combination, these factors allow less profitable areas of a reservoir to be developed and produced in the interest of all parties, including the state. The overall costs total cost of exploring and developing the McCovey Cosmopolitan Unit leases would be higher on a lease-by-by- lease basis than it will would be under the terms of unitizationunitization terms. Investments in drilling Drilling and facilities investment costs will be minimized as a consequence of eliminating the requirement a need for multiple numerous sites within the unit area. Locations of individual xxxxx and surface facilities will be selected to optimize recovery of ultimate oil and gas recovery, while minimizing or completely avoiding adverse impacts to the resources and to minimize costs with due regard for environmental considerationsenvironment. Reducing costs and environmental impacts through unitized operations will expedite development of any reserves discovered and will promote greater ultimate recovery of any oil and gas in from the unit area. This will accelerate increase and extend the state’s income stream from severance production taxes and royalties. The revenues to the lessee lessees and unit operator may be reinvested in new exploration and development in the state. Unitization means reduced costs and increased benefits to all interested parties. It benefits the local and state economy, and provides revenues to the state’s general, school, constitutional budget reserve, and permanent funds.

The Prevention of Economic and Physical Waste. Formation of the The unit will prevent economic and physical waste because the unit operator must have an equitable a cost sharing formula and agreement, a coordinated development exploration plan, and if a commercial discovery is made, a comprehensive reservoir depletion model. An equitable cost- A cost-sharing agreement promotes efficient development of common surface facilities and operating strategies. An equitable With a cost-sharing agreementagreement and reservoir model in place, and an acceptable unit operator, allows the working interest owners in the unit to WIO can rationally decide well spacing requirements, injection strategiesplans, and the proper joint-use of surface facilities. Unitization prevents economic and physical waste by eliminating redundant expenditures for a given level of production, and by avoiding loss of ultimate recovery by adopting with the adoption of a unified reservoir management plan. Unitized operations greatly improve development of reservoirs beneath leases that may have variable or unknown productivity. Marginally economic reserves, which otherwise would not be produced on a lease-by-lease basis, often can be produced through unitized operations in combination with more productive leases. Facility consolidation saves lowers capital costs and promotes better optimal reservoir management for all working interest ownersmanagement. Pressure maintenance and secondary recovery procedures are much more predictable easier to design and attainable achieve through joint, unitized efforts than would otherwise be possible. In combination, these factors allow less profitable areas of a reservoir to be developed and produced in the interest of all parties, including the state. The overall costs total cost of exploring and developing the McCovey Whiskey Gulch Unit leases would be higher on a lease-by-lease basis than it will would be under the terms of unitizationunitization terms. Investments in drilling Drilling and facilities investment costs will be minimized as a consequence of eliminating the requirement a need for multiple numerous sites within the unit area. Locations of individual xxxxx and surface facilities will be selected to optimize recovery of ultimate oil and gas recovery, while minimizing or completely avoiding adverse impacts to the resources and to minimize costs with due regard for environmental considerationsenvironment. Reducing costs and environmental impacts through unitized operations will expedite development of any reserves discovered and will promote greater ultimate recovery of any oil and gas in from the unit area. This will accelerate increase and extend the state’s income stream from severance production taxes and royalties. The revenues to the lessee lessees and unit operator may be reinvested in new exploration and development in the state. Unitization means reduced costs and increased benefits to all interested parties. It benefits the local and state economy, and provides revenues to the state’s general, school, constitutional budget reserve, and permanent funds.

The Prevention of Economic and Physical Waste. Formation of the The unit will prevent economic and physical waste because the unit operator must have an equitable a cost sharing formula and agreement, a coordinated development exploration plan, and if a commercial discovery is made, a comprehensive reservoir depletion model. An equitable cost- A cost-sharing agreement promotes efficient development of common surface facilities and operating strategies. An equitable With a cost-sharing agreementagreement and reservoir model in place, and an acceptable unit operator, allows the working interest owners in the unit to can rationally decide well spacing requirements, injection strategiesplans, and the proper joint-use of surface facilities. Unitization prevents economic and physical waste by eliminating redundant expenditures for a given level of production, and by avoiding loss of ultimate recovery by adopting with the adoption of a unified reservoir management plan. Unitized operations greatly improve development of reservoirs beneath leases that may have variable or unknown productivity. Marginally economic reserves, which otherwise would not be produced on a lease-by-lease basis, often can be produced through unitized operations in combination with more productive leases. Facility consolidation saves lowers capital costs and promotes better optimal reservoir management for all working interest owners. Pressure maintenance and secondary recovery procedures are much more predictable easier to design and attainable achieve through joint, unitized efforts than would otherwise be possible. In combination, these factors allow less profitable areas of a reservoir to be developed and produced in the interest of all parties, including the state. The overall costs total cost of exploring and developing the McCovey Sakonowyak River Unit leases would be higher on a lease-by-lease basis than it will would be under the terms of unitizationunitization terms. Investments in drilling Drilling and facilities investment costs will be minimized as a consequence of eliminating the requirement a need for multiple numerous sites within the unit area. Locations of individual xxxxx and surface facilities will be selected to optimize recovery of ultimate oil and gas recovery, while minimizing or completely avoiding adverse impacts to the resources and to minimize costs with due regard for environmental considerationsenvironment. Reducing costs and environmental impacts through unitized operations will expedite development of any reserves discovered and will promote greater ultimate recovery of any oil and gas in from the unit area. This will accelerate increase and extend the state’s income stream from severance production taxes and royalties. The revenues to the lessee lessees and unit operator may be reinvested in new exploration and development in the state. Unitization means reduced costs and increased benefits to all interested parties. It benefits the local and state economy, and provides revenues to the state’s general, school, constitutional budget reserve, and permanent funds.

The Prevention of Economic and Physical Waste. Formation of the The unit will prevent economic and physical waste because the unit operator must have an equitable a cost sharing formula and agreement, a coordinated development exploration plan, and if a commercial discovery is made, a comprehensive reservoir depletion model. An equitable cost- A cost-sharing agreement promotes efficient development of common surface facilities and operating strategies. An equitable cost-With a cost- sharing agreementagreement and reservoir model in place, and an acceptable unit operator, allows the working interest owners WIOs in the unit to can rationally decide well spacing requirements, injection strategiesplans, and the proper joint-use of surface facilities. Unitization prevents economic and physical waste by eliminating redundant expenditures for a given level of production, and by avoiding loss of ultimate recovery by adopting with the adoption of a unified reservoir management plan. Unitized operations greatly improve development of reservoirs beneath leases that may have variable or unknown productivity. Marginally economic reserves, which otherwise would not be produced on a lease-by-lease basis, often can be produced through unitized operations in combination with more productive leases. Facility consolidation saves lowers capital costs and promotes better optimal reservoir management for all working interest ownersWIOs. Pressure maintenance and secondary recovery procedures are much more predictable easier to design and attainable achieve through joint, unitized efforts than would otherwise be possible. In combination, these factors allow less profitable areas of a reservoir to be developed and produced in the interest of all parties, including the state. The overall costs total cost of exploring and developing the McCovey NE Storms Unit leases would be higher on a lease-by-lease basis than it will would be under the terms of unitizationunitization terms. Investments in drilling Drilling and facilities investment costs will be minimized as a consequence of eliminating the requirement a need for multiple numerous sites within the unit area. Locations of individual xxxxx and surface facilities will be selected to optimize recovery of ultimate oil and gas recovery, while minimizing or completely avoiding adverse impacts to the resources and to minimize costs with due regard for environmental considerationsenvironment. Reducing costs and environmental impacts through unitized operations will expedite development of any reserves discovered and will promote greater ultimate recovery of any oil and gas in from the unit area. This will accelerate increase and extend the state’s income stream from severance production taxes and royalties. The revenues to the lessee lessees and unit operator may be reinvested in new exploration and development in the state. Unitization means reduced costs and increased benefits to all interested parties. It benefits the local and state economy, and provides revenues to the state’s general, school, constitutional budget reserve, and permanent funds.