Communitization Agreement - Short Term - New Mexico

Communitization Agreement - Short Term is a legal document that was released by the New Mexico State Land Office - a government authority operating within New Mexico.

FAQ

Q: What is a Communitization Agreement?A: A Communitization Agreement is a contract between multiple oil and gas operators to jointly develop and produce resources from a single drilling unit.

Q: What is a Short Term Communitization Agreement?A: A Short Term Communitization Agreement is a temporary agreement between operators to share resources and infrastructure for a limited time period.

Q: What is the purpose of a Short Term Communitization Agreement?A: The purpose of a Short Term Communitization Agreement is to optimize resource development and reduce costs by sharing equipment, facilities, and resources.

Q: How long does a Short Term Communitization Agreement typically last?A: The duration of a Short Term Communitization Agreement can vary, but it is usually for a short period, such as a few months or a year.

Q: What are the benefits of a Communitization Agreement?A: Benefits of a Communitization Agreement include increased efficiency, reduced costs, and better resource management.

Q: Is a Communitization Agreement mandatory?A: No, a Communitization Agreement is not mandatory. It is a voluntary arrangement between operators.

Q: Who regulates Communitization Agreements in New Mexico?A: Communitization Agreements in New Mexico are regulated by the New Mexico Oil Conservation Division.

Q: Are Communitization Agreements specific to New Mexico?A: No, Communitization Agreements can be established in other states as well, but the regulations and requirements may vary.

Q: Can individual landowners be part of a Communitization Agreement?A: Yes, individual landowners can choose to participate in a Communitization Agreement if their property is within the drilling unit.

Q: What happens if an operator violates the terms of a Communitization Agreement?A: If an operator violates the terms of a Communitization Agreement, they may be subject to penalties and legal consequences.

Q: Can a Short Term Communitization Agreement be extended or renewed?A: Yes, a Short Term Communitization Agreement can be extended or renewed if all parties agree to do so.