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