[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR3186.2]



[Page 470]

 

                    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:



[fxsp0]_________________________________________________________________



 (Principal)



[fxsp0]_________________________________________________________________

[fxsp0]_________________________________________________________________

[fxsp0]_________________________________________________________________



 (Surety)