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made, to reflect the retroactive effect of the (d) A carried working interest Owner commitment, for all benefits accruing to or should sign under the heading of OTHER payments and expenditures made or incurred PARTIES. on behalf of such surrendered working inter

NOTE: The following is a sample form of est during the period between the date of

approval certificate to be attached to each surrender and the date of recommitment, and

executed copy of unit agreement submitted payment of any moneys found to be owing

for approval. by such an accounting shall be made as between the parties then signatory to the

CERTIFICATION-DETERMINATION unit operating agreement and this agree

Pursuant to the authority vested in the ment within thu ty (30) days after the re

Secretary of the Interior, under the act apcommitment. The right to become a party

proved February 25, 1920, 41 Stat. 437, 80 to this agreement and the unit operating

U. 8. C. secs. 181, et seq., as amended by the agreement as a working interest owner by

act of August 8, 1946, 60 Stat. 950, and delereason of a surrender or forfeiture as pro

gated to the Director of the Geological Survided in this section shall not be defeated by the non-existence of a unit operating agree

vey pursuant to Departmental Order No. 2365

of October 8, 1947, 12 F. R. 6784, I do hereby: ment and in the event no unit operating

A. Approve the attached agreement for the agreement is in existence and a mutually

development and operation of the acceptable agreement between the proper

Unit Area, State of parties thereto cannot be consummated, the

B. Certify and determine that the unit Supervisor may prescribe such reasonable

plan of development and operation contemand equitable agreement as he deems war

plated in the attached agreement is necesranted under the circumstances.

sary and advisable in the public interest for Nothing in this section shall be deemed to

the purpose of more properly conserving the Ilmiit the right of Joinder or subsequent

natural resources. joinder to this agreement as provided else

C. Certify and determine that the drilling, where in this agreement. The exercise of any

producing, rental, minimum royalty, and right vested in a working interest owner to

royalty requirements of all Federal leases reassign such working interest to the party

committed to said agreement are hereby from whom obtained shall be subject to the

established, altered, changed, or revoked to same conditions as set forth in this section in

conform with the terms and conditions of regard to the exercise of a right to surrender.

this agreement.

Dated:
WORKING INTEREST OWNERS
Date:

Director, United States Geological Survey. Attest:

EXHIBIT A

SWAN UNIT AREA
Secretary By

T. 54 NR. 70W., M.PM. WYOMING

President Dato:

ifrosti Deer i Doe 1 Date:

12 tiso

i3-13 OTER PARTIES

s.is. Sims

PT Date:

8-036476 B.039210 J. C. Smith Attest:

1 Snow! 1 Smith I Frost

| Deer! By .

+21-5
-
122-14

-240 Secretary By

1

그 President

3.041274 7. J. Cook 8.1039791 B.043970 Date: Date:

Frosti Decr&De | Deer 1 | Snow NOTE

-28-6 27- 126 (a) At the option of the parties a section

ito may be included covering the payment of B. 041345 B.'04 1679 B,042 780 B.044792 taxes.

I Doe 1 I Deeri | Deer

Doeletal. (b) Unit Operator should sign both as Unit Operator and as a working interest

is

-as © owner.

L

-A!A. Aan (c) Only those who are arties to the Unit

.

Mapa K.IC.Knott B.03 9123 Operating and Accounting Agreement should sign as working interest owners.

Means tract number as listed on Exhibit B.

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SAMPLE ETHIBIT B-SWAN UNIT AREA, CAMPBELL COUNTY, WYOMING, T. 64 N., R. 70 W.

[blocks in formation]
[blocks in formation]

Buffalo
Seriale
038470

U.S. All..... T.J. Cook.--- T.J. Cook 2%-.. Frost 0, Co., AU.
7-1-49
039123 do...

0.M. Odom... 0. M. Odom 1%- Deer 0. Co., Al.
7-1-49
039210 do..

Tom Black...- Tom Black 2%-- Do.
7-1-49
039791 do...

G. G. White.. G. G. White 2%- Frost 0. Co., Al.
8-1-49
041274 do..

Joe Blue....... Joe Blue 1%..... Snow 0. Co., AU. 10-1-49 041345 do........ SMar Pen.. Max Pen 1%

Frost O. Co., AN. 11-1-49

(Sam Small.... Sam Small 1%---
041679

Al Preen...---
Al Preen 2%-

Deer 0. Co., 50%. 121-49 }--..do...

Doe 0. Co., 50%. BLM-A..do..

8. T. Jones.... 8. T Jones 193% Doe 0. Co , All. 041789 1-1-50 .do..

J. G. Goodin.- J. G. Goodin 2% Deer 0. Co., Al.
042780
2-1-50 do...
Tim Holder... Tim Holder 2%

Do.
043970
3-1-50 do

Al Black... Al Black 2%-... Snow 0. Co., Al.
044792
Appl'n.

18. 8. Sims 60%..
7-12-60 Wm. Sims 25%--Deer 0. Co.... T. T. Timo 2%.- Deer 0. Co., All.

(Joe Sims 25%---
8-2-50 J. C. Smith... Doe 0. Co... None..

Doe O. Co., All. 9-16-50 T.J. Cook. W. W. Smith.. Sam Spade 1%-- W. W. Smith, All. 6-1-60 K. C. Knott. Deer 0. Co.... None...

Deer 0. Co., All. SA. A. Aben 75%6-16-50

do....

ĮDoe 0. Co. 60% L. P. Aben 20%-}Do. 0. Co......

(W W. Smith 40%.

[blocks in formation]

Total: 16 tracts 10,240.00 acres in entire unit area.
NOTE: Group lands by types, listing Federal leases by order of serial number.
Tract numbers are merely for simple and convenient reference.

Consents should be identified (in pencil if desired) by tract numbers as listed in Exhibit B and assembled in that order as far as practical.

For patented land tracts, the lease expiration date may be shown in lieu of the lease date.

$ 226.15 Form of collective bond.

COLLECTIVE CORPORATE SURITY BOND Know all men by these presents, That wo,

---, signing as (Name of unit operator) Principal, for and on behalf of the record owners of unitized substances now or bereafter covered by the unit agreement for the

approved (Name of unit)

(Date)

----, as Surety (Name and address of Surety) are jointly and severally held and firmly bound unto the United States of America in the sum of

Dollars, lawful (Amount of bond) money of the United States, for the use and benefit of and to be paid to the United States and any entryman or patentee of any portion of the unitized land beretofore entered or patented with the reservation of tho oil or gas deposits to the United States, for which payment, well and truly to be made, we bind ourselves, and each of us, and each of our heirs, executors, administrators, successors, and assigns by these presents.

The condition of the foregoing obligation 18 such, that, whereas the Secretary of the Interior on

approved un

(Date) der the provisions of the act of February 25, 1920, 41 Stat. 437, 30 U. S. C. secs. 181, et seq., as amended by the act of August 8, 1946, 60 Stat 960, a unit agreement for tho development and operation of the

Whereas said Principal and Surety agree to the payment of compensatory royalty under the regulations of the Interior Department in lieu of drilling necessary offset wells in the event of drainage; and

Whereas nothing herein contained shall preclude the United States from requiring an additional bond at any time when deemed necessary:

Now, therefore, if the said Principal shall faithfully comply with all of the provisions of the above-identified unit agreement and with the terms of the leases committed thereto, then the above obligation is to be of no effect; otherwise to remain in full force and virtue.

Signed, sealed, and delivered this day of

19.---, in the presence of : Witnesses:

(Principal)

(Surety)

§ 226.16 Form of designation of suc

cessor unit operator by working in

terest owners.

---; and

12

Designation of successor Unit Operator

Unit Area, County of

State of No. This indenture, dated as of the day of

19.---, by and between

hereinafter designated as “First Party," and the owners of unitized working interests, hereinafter designated as “Second parties,"

WITNESSETH: Whereas under the provisions of the act of February 25, 1920, 41 Stat. 437, 30 U. 8. C. secs. 181, et seq., as amended by the act of August 8, 1946, 60 Stat. 950, the Secretary of the Interior, on the day of

approved a unit agreement for the

Unit Area, wherein

15 designated as Unit Operator; and Whereas said

has resigned as such Operator, and the designation of a successor Unit Operator is now required pursuant to the terms thereof; and

Whereas the First Party has been and hereby is designated by Second Parties as Unit Operator, and said First Party desires to assume all the rights, duties, and obligations of Unit Operator under the said unit agreement:

Now, therefore, in consideration of tho premises hereinbefore set forth and the promises hereinafter stated, the First Party

(Name of unit and State) Whereas said Principal and record owners of unitized substances, pursuant to said unit agreement, have entered into certain covenants and agreements as set forth therein, under which operations are to be conducted; and

Whereas said Principal as Unit Operator has assumed the duties and obl ations of the respective owners of unitized substances as defined in said unit agreement; and

Whereas said Principal and Surety agree to remain bound in the full amount of the bond for failure to comply with the terms of the unit agreement, and the payment of rentals, minimum royalties, and royalties due under the Federal leases committed to said unit agreement; and

Whereas the Surety hereby waives any right of notice of and agrees that this bond may remain in force and effect notwithstanding:

(a) Any additions to or change in the ownership of the unitized substances herein described;

(b) Any suspension of the drilling or producing requirements or walver, suspension, or reduction of rental or minimum royalty payments or reduction of royalties pursuant to applicable laws or regulations thereunder; and

---, 19..

· Where the designation of a succesor Unit Operator is required for any reason other than resignation, such reason shall be substituted for the one stated.

hereby covenants and agrees to fulall the of

19.---, approved a unit duties and assume the obligations of Unit agreement for the

--- Unit Area, Operator under and pursuant to all the terms

wherein the First Party is designated as Unit of the unit agreement, and

Operator; and the Second Parties covenant and agree that, whereas the First Party desires to transfer, effective upon approval of this indenture

assign, release, and quitclaim, and the Secby the Director of the Geological Survey, ond Party desires to assume all the rights, First Party shall be granted the exclusive duties, and obligations of Unit Operator right and privilege of exercising any and all under the unit agreement; and rights and privileges as Unit Operator, pur- Whereas for suficient and valuable con. suant to the terms and conditions of sald sideration, the receipt whereof is hereby acunit agreement; sald unit agreement being knowledged, the First Party has transferred, hereby incorporated herein by reference and conveyed, and assigned all his/Its rights un. made a part hereof as fully and effectively der certain operating agreements involving as though said unit agreement were expressly lands within the area set forth in said unit set forth in this instrument.

agreement unto the Second Party: In witness whereof, the parties hereto Now, therefore, in consideration of the have executed this instrument as of the dato premises hereinbefore set forth, the First hereinabove set forth.

Party does hereby transfer, assign, release,

and quitclaim unto Second Party all of First

(Pirst Party) Party's rights, duties, and obligations as Unit (Witnesses)

Operator under said unit agreement; and

Second Party hereby accepts this assign(Second Parties)

ment and hereby covenants and agrees to (Witnesses)

fulfil the duties and assume the obligations

of Unit Operator under and pursuant to all I hereby approve the foregoing indenture

the terms of said unit agreement to the full designating

as Unit Operator extent set forth in this assignment, effective under the unit agreement for the

upon approval of this Indenture by the Di. Unit Area, this day of

rector of the Geological Survey: said unit 19...

agreement being hereby incorporated herein

by reference and made a part hereof as fully Director of the Geological Survey. and effectively as though said unit agree

ment were expressly set forth in this $ 226.17 Form of change in unit opera

Instrument. tor by assignment.

In witness whereof, the parties hereto bave

executed this instrument as of the date Change in Unit Operator

hereinabove set forth. Unit Area, County of

State of No.

(First Party) This indenture, dated as of the

day

(Witnesses) of

19.---, by and between

hereinafter designated as "First Party," and

(Second Party) hereinafter designated as "Second I hereby approve the foregoing indenture Party."

designating

as Urit Operator WITNESSETH: Whereas under the provisions under the unit agreement for the of the act of February 25, 1920, 41 Stat. 437,

Unit Area, this

day of 30 U. S. C. secs. 181, et seq., as amended by the act of August 8, 1946, 60 Stat. 950, the Secretary of the Interior, on the

day

Director of the Geological Survey.

19...

PART 229—REGULATIONS FOR OB- standard geophysical and geochemical

TAINING FEDERAL ASSISTANCE IN methods, may be conducted from the surFINANCING EXPLORATIONS FOR

face or underground to obtain pertinent

geological and mineralogical informaMINERAL RESERVES, EXCLUDING tion. The work shall not go beyond a ORGANIC FUELS, IN THE UNITED reasonable delineation and sampling of STATES, ITS TERRITORIES AND POS- a mineral deposit, and shall not be conSESSIONS

ducted primarily for mining or prepara

tion for mining. GENERAL PROVISIONS

(b) "Operator" means an individual Sec. 229.1 Purpose.

partnership, corporation, or other legal 229.2 Definitions.

entity that is party to an exploration con229.3 Eligible minerals or mineral products. tract with the Government. 229.4 Operator's property rights.

(c) “Secretary” means the Secretary

of the Interior, or his authorized repreAPPLICATIONS

sentative. 229.5 Form and filling.

(d) “Government” and “Federal” 229.6 Information required.

means the United States of America. 229.7 Criteria.

(e) “Commercial 229.8

sources" means Approval.

banking institutions or other private EXPLORATION CONTRACTS

sources of credit. 229.9 Government participation.

$ 229.3 Eligible minerals or mineral 229.10 Allowable costs.

products. 229.11 Repayment by the operator. 229.12 Interest on amount of Government

The following are eligible for Governparticipation.

ment financial assistance: 229.13 Limitation on the amount of Gov

Antimony.

Mercury. erment participation.

Asbestos.

Mica (strategic). 229.14 Government not obligated to buy.

Bauxite. 229.15

Molybdenum.
Title to and disposition of property. Beryllium.

Monazite.
AUTHORITY: The provisions of this Part 229

Bismuth.

Nickel. issued under sec. 2(e), 72 Stat. 700; 30 U.S.C.

Cadmium.

Platinum Group 642(e).

Chromite.

Metals.
Cobalt.

Quartz Crystal
SOURCE: The provisions of this Part 229 ap-

Columbium.

(piezoelectric). pear at 30 F.R. 2866, Mar. 5, 1965, unless

Copper.

Rare Earths. otherwise noted.

Corundum.

Rutile.
Diamond

Selenium.
(industrial).

Silver.
GENERAL PROVISIONS

Fluorspar.

Sulphur. $ 229.1 Purpose.

Gold.

Talc (block steatite).

Graphite (crucible Tantalum. The regulations in this part govern flake).

Tellurium. the obtaining of Federal financial assist- Iron Ore.

Thorium. ance in conducting exploration for min- Kyanite (strategic). Tin. eral reserves, excluding organic fuels, in Manganese.

Uranium. the United States, its territories or pos- (31 F.R. 9062, July 1, 1966) sessions.

$ 229.4 Operator's property rights.

The operator must have and preserve $ 229.2 Definitions.

the right to possession of the land (as As used in this part:

owner, lessee, or otherwise) for a term at (a) “Exploration” means the search, least sufficient to complete the exploraincluding related development work, for tion work. (See $ 229.11(f) regarding new or unexplored mineral deposits repayment.) The operator shall devote within a specified area or parcel of the land and all existing improvements, ground where geologic conditions favor facilities, buildings, installations, and their occurrence. Exploration using rec- appurtenances necessary to the purposes ognized and sound procedures, including of the exploration.

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