How Do Secondary Recovery Units Benefit Indian Mineral Owners?
A Secondary Recovery Unit is another type of Unit Agreement used to increase oil and gas production. Unit Agreements are used by the oil and gas industry to develop large underground petroleum reservoirs in an efficient and orderly manner. Unit Agreements combine individual leases covering an underground oil and gas reservoir (or several adjoining ones) into a larger area or “unit.” This allows an operator to develop the area efficiently and provides for maximum recovery of oil and gas. Unit agreements may include Indian, federal, state, and/or private leases, and enable operators to recover oil and gas that might not otherwise be recoverable from individual leases.
