Fillable Communitization Agreement Template (Page 2 of 5) in pdf

amending Spacing Order No. ___________ and Pooling Order No. __________,

or authorizing increased density _____________ pool wells within the boundary

of this agreement, this agreement and the allocation of production provided

herein, shall apply to all such increased density wells.

_________________________________________________ of Section _______

and the ___________________________________ of Section _________,

Township __________, Range __________, are communitized as to crude oil

and associated natural gas producible from the ______________ pool via CA

____________________. Any production from this CA will be allocated and

shared on the basis currently in effect (communitized basis) and not on the basis

that is established under this agreement.

2. Attached hereto, and made a part of this agreement for all purposes, is Exhibit

B, designating the operator of the communitized area and showing the acreage,

percentage and ownership of oil and gas interests in all lands within the

communitized area, and the authorization, if any, for communitizing or pooling any

patented or fee lands within the communitized area.

3. All matters of operation shall be governed by the operator under and pursuant

to the terms and provisions of this agreement. A successor operator may be

designated by the owners of the working interest in the communitized area, and four

(4) executed copies of a designation of successor operator shall be filed with the

Authorized Officer.

4. Operator shall furnish the Secretary of the Interior, or his authorized representative,

with a log and history of any well drilled on the communitized area, monthly reports

of operations, statements of oil and gas sales and royalties and such other reports as

are deemed necessary to compute monthly the royalty due the United States, as

specified in the applicable oil and gas regulations.

5. The communitized area shall be developed and operated as an entirety, with the

understanding and agreement between the parties hereto that all communitized

substances produced therefrom shall be allocated among the leaseholds comprising

said area in the proportion that the acreage interest of each leasehold bears to the

entire acreage interest committed to this agreement.

All proceeds, 8/8ths, attributed to unleased Federal, State or fee land included within

the CA area are to be placed in an interest earning escrow or trust account by the

designated operator until the land is leased or ownership is established.

6. The royalties payable on communitized substances allocated to the individual leases

comprising the communitized area and the rentals provided for in said leases shall be

determined and paid on the basis prescribed in each of the individual leases.

Payments of rentals under the terms of leases subject to this agreement shall not be

affected by this agreement except as provided for under the terms and provisions of

said leases or as may herein be otherwise provided. Except as herein modified and

changed, the oil and gas leases subject to this agreement shall remain in full force and

effect as originally made and issued. It is agreed that for any Federal lease bearing a

sliding- or step-scale rate of royalty, such rate shall be determined separately as to

production from each communitization agreement to which such lease may be

committed, and separately as to any noncommunitized lease production, provided,

however, as to leases where the rate of royalty for gas is based on total lease

Communitization Agreement Template Page 2

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