---
kind: "section"
citation: "43 C.F.R. § 3281.14"
title: "43"
number: "3281.14"
heading: "What minimum requirements and terms must be incorporated into the unit agreement?"
url: "https://uscodex.org/cfr/43/3281.14"
---

# §3281.14. What minimum requirements and terms must be incorporated into the unit agreement?

- (a) **The unit agreement must, at a minimum—**
  - (1) State who the unit operator is, and that the unit operator and participating lessees accept the unit terms and obligations set forth in the agreement and applicable BLM regulations;
  - (2) State the size and general location of the unit area;
  - (3) Include procedures for revising the unit area or participating area(s);
  - (4) Include procedures for amending the unit agreement;
  - (5) State the effective date and term of the unit, as provided in [paragraph (b)](#b) of this section;
  - (6) Incorporate the minimum initial unit obligations, as specified in [§ 3281.15](/cfr/43/3281.15.md);
  - (7) State that BLM may require a modification of the rate of resource exploration or development, or the production quantity or rate, within the unit area;
  - (8) State that the agreement is subject to periodic BLM review;
  - (9) State that BLM will deem the unit agreement as void as if it were never in effect if the minimum initial unit obligations are not met;
  - (10) Include a plan of development; and
  - (11) **Include a unit contraction provision.**
- (b) The unit agreement must provide that it terminates 5 years after its effective date unless:
  - (1) BLM extends such date of expiration;
  - (2) Unitized substances are produced or utilized in commercial quantities in which event the agreement continues for so long as unitized substances are produced or utilized in commercial quantities; or
  - (3) **BLM terminates the agreement under subpart 3285 of this part before the end of the 5 year period.**
- (c) The agreement may include any other provisions or terms that BLM and the unit operator agree are necessary for proper resource exploration and development, and management of the unit area.

## Notes

### Authority

Authority: 30 U.S.C. 1001-1028 and 43 U.S.C. 1701 et seq.

### Source

Source: 72 FR 24432, May 2, 2007, unless otherwise noted.