[Code of Federal Regulations]
[Title 43, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR3186.2]

[Page 457]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR
 
PART 3180_ONSHORE OIL AND GAS UNIT AGREEMENTS: UNPROVEN AREAS--Table of 
Contents
 
                        Subpart 3186_Model Forms
 
Sec. 3186.2  Model collective bond.

                    Collective Corporate Surety Bond

    Know all men by these presents. That we, ------------------ (Name of 
unit operator), signing as Principal, for and on behalf of the record 
owners of unitized substances now or hereafter covered by the unit 
agreement for the ------------------ (Name of unit), approved ----------
-------- (Date) -------------------- (Name and address of Surety), as 
Surety are jointly and severally held and firmly bound unto the United 
States of America in the sum of ------ (Amount of bond) Dollars, lawful 
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 here-to-fore entered or patented with the reservation of 
the 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 is such, that, whereas the 
Secretary of the Interior on ---------------- (Date) approved under 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. 
950, a unit agreement for the development and operation of the --------
-------------- (Name of unit and State); and
    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 
obligations 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 
waiver, suspension, or reduction of rental or minimum royalty payments 
or reduction of royalties pursuant to applicable laws or regulations 
thereunder; and
    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-indentified 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 ------------------
--, in the presence of:
    Witnesses:

________________________________________________________________________

 (Principal)

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

 (Surety)