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Notes

43 C.F.R. §§ 3281.7–3281.17

11 sections in range

§3281.7. What documents must a unit operator submit to BLM before we will approve a unit agreement?

43 C.F.R. § 3281.7

After BLM approves a unit area designation, a unit operator must submit the following information in order for BLM to approve a unit agreement:
(a)
Documentation of tract commitment (see §§ 3281.8 and 3281.9);
(b)
The unit agreement (see § 3281.15);
(c)
The map required by § 3281.2(a)(2), if any modifications have occurred since the unit area was designated;
(d)
The list required by § 3281.2(a)(3) indicating whether each lease or tract is committed to the unit agreement; and
(e)
The plan of development.
Notes, amendments, and revision history

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.

§3281.8. Must a unit operator provide working interests within the designated unit area the opportunity to join the unit?

43 C.F.R. § 3281.8

After BLM designates a unit area, the unit operator must invite all owners of mineral rights (leased or unleased) and lease interests (record title and operating rights) in the designated unit area to join the unit. The unit operator must provide the lease interests and mineral rights owners 30 days to respond. If an interest or owner does not respond, the unit operator must provide BLM with written evidence that all the interests or owners were invited to join the unit. BLM will not approve a unit agreement proposal if this evidence is not submitted.
Notes, amendments, and revision history

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.

§3281.9. How does a unit operator provide documentation to BLM of lease and tract commitment status?

43 C.F.R. § 3281.9

(a)
The unit operator must provide documentation to BLM of the commitment status of each lease and tract in the designated unit area. The documentation must include a joinder or other comparable document signed by the lessee or mineral rights owner, or evidence that an opportunity to join was offered and no response was received (see § 3281.8).
(b)
A majority interest of owners of any single Federal lease has authority to commit the lease to a unit agreement.
Notes, amendments, and revision history

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.

§3281.10. How will BLM determine that I have sufficient control of the proposed unit area?

43 C.F.R. § 3281.10

(a)
BLM will determine whether:
(1)
A unit operator has sufficient control of the proposed unit area by reviewing the number and location of leases and tracts committed and their geologic potential for development in relation to the entire proposed unit area; and
(2)
The committed tracts provide the unit operator with sufficient control of the unit area to conduct resource exploration and development in the public interest.
(b)
If BLM determines that the unit operator does not have sufficient control of the unit area, we will not approve the unit agreement.
Notes, amendments, and revision history

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.

§3281.11. What are the unit operator qualifications?

43 C.F.R. § 3281.11

(a)
Before BLM will approve a unit agreement, the unit operator must:
(1)
Meet the same qualifications as a lessee (see § 3202.10 of this chapter); and
(2)
Demonstrate sufficient control of the unit area (see § 3281.10).
(b)
A unit operator is not required to have an interest in any lease committed to the unit agreement.
Notes, amendments, and revision history

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.

§3281.12. Who designates the unit operator?

43 C.F.R. § 3281.12

The owners of geothermal rights and lease interests committed to the unit agreement will nominate a unit operator. Before designating the unit operator, BLM must also determine whether the prospective unit operator meets the requirements of § 3281.11.
Notes, amendments, and revision history

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.

§3281.13. Is there a format or model a unit operator must use when proposing a unit agreement?

43 C.F.R. § 3281.13

When proposing a unit agreement, submit to BLM:
(a)
The model unit agreement (see § 3286.1);
(b)
The model unit agreement with variances noted; or
(c)
Any unit agreement format that contains all the terms and conditions BLM requires (see §§ 3281.14 and 3281.15).
Notes, amendments, and revision history

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.

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

43 C.F.R. § 3281.14

(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) of this section;
(6)
Incorporate the minimum initial unit obligations, as specified in § 3281.15;
(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, amendments, and revision history

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.

§3281.15. What is the minimum initial unit obligation a unit agreement must contain?

43 C.F.R. § 3281.15

(a)
The unit agreement must—
(1)
Require the unit operator to drill, within the timeframe specified in the unit agreement, at least one unit well on a tract committed to the unit agreement;
(2)
Specify the location and the minimum depth and/or geologic structure to which the initial unit well will be drilled; and
(3)
Require the unit operator, upon completing a unit well, to provide to BLM in a timely manner the information required at § 3264.10 of this chapter.
(b)
Depending on the size of the proposed unit area, BLM may require the minimum initial unit agreement obligation to include the drilling of more than one unit well.
(c)
If necessary to aid in the evaluation of drilling locations, BLM and the unit operator may agree to include types of exploration operations as part of the initial unit obligation. An example of such work is drilling temperature gradient wells.
(d)
BLM will not consider any work done prior to unit approval for the purpose of meeting initial unit obligations.
Notes, amendments, and revision history

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.

§3281.16. When must a Plan of Development be submitted to BLM?

43 C.F.R. § 3281.16

(a)
The prospective unit operator must submit an initial Plan of Development at the time the unit area is proposed for designation.
(b)
Subsequent Plans of Development that were not already provided must be submitted to address future unit activities to be conducted throughout the term of the unit agreement. For example, if the Plan only addressed activities until a unit well is completed, the subsequent Plan must address activities including the drilling of additional unit wells until a producible well is completed. Once a producible well is completed, the Plan or subsequent Plan must address those activities related to utilizing the resource.
(c)
There is no requirement to submit a Plan of Development once unitized resources begin commercial operation.
Notes, amendments, and revision history

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.

§3281.17. What information must be provided in the Plan of Development?

43 C.F.R. § 3281.17

(a)
The Plan of Development must state the types of and timeframes for activities the unit operator will conduct in diligent pursuit of unit exploration and development. The Plan may address those activities that will be conducted until the minimum initial unit obligation is met, or it may address all activities that will occur through the term of the unit agreement.
(b)
The Plan of Development may specify that the activities will be conducted in phases during the term of the unit agreement. For example, the number, location, and depth of temperature gradient wells, and the timeframe for the completion of these wells, may be the first phase. A second phase may include drilling of observation or slim-hole wells to a greater depth than that specified in the first phase. Completion of the unit well may be the third phase. In all cases, the Plan of Development must include the completion of at least one unit well.
Notes, amendments, and revision history

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.