13:09
Yo
Warning
Info
LSDefine
Simple English definitions for legal terms
forced unitization
Read a random definition: Subject to partial divestment
A quick definition of forced unitization:
Forced Unitization: When oil and gas wells in a reservoir are combined for joint operations, it is called unitization. Forced unitization is when this is done by order of a regulatory agency. It is usually done when primary production has decreased, to allow for efficient secondary-recovery operations. This is also done to comply with well-spacing requirements established by state law or regulation. It is different from pooling, which is associated with drilling a single well and operating that well by primary-production techniques. Voluntary unitization is when the owners of mineral interests agree to unitize.
A more thorough explanation:
Definition: Forced unitization is the process of combining multiple oil or gas wells over a reservoir for joint operations, such as enhanced-recovery techniques. This is usually done after primary production has decreased significantly, to allow for efficient secondary-recovery operations. It can also be done to comply with well-spacing requirements established by state law or regulation.
Example: Let's say there are several oil wells in a particular area, each owned by different companies. If the oil production from these wells has decreased significantly, the regulatory agency may order forced unitization. This means that the companies will have to work together to combine their wells and use enhanced-recovery techniques to extract more oil from the reservoir.
Explanation: The example illustrates how forced unitization works in practice. When oil production from individual wells decreases, it becomes more efficient to combine them and use enhanced-recovery techniques. This is where forced unitization comes in, as it allows companies to work together to extract more oil from the reservoir.