Legal Definitions - forced unitization

Definition: Forced unitization is the process of combining multiple oil or gas wells over a reservoir for joint operations, such as enhanced-recovery techniques. This is usually done after primary production has decreased significantly, to allow for efficient secondary-recovery operations. It can also be done to comply with well-spacing requirements established by state law or regulation.

Example: Let's say there are several oil wells in a particular area, each owned by different companies. If the oil production from these wells has decreased significantly, the regulatory agency may order forced unitization. This means that the companies will have to work together to combine their wells and use enhanced-recovery techniques to extract more oil from the reservoir.

Explanation: The example illustrates how forced unitization works in practice. When oil production from individual wells decreases, it becomes more efficient to combine them and use enhanced-recovery techniques. This is where forced unitization comes in, as it allows companies to work together to extract more oil from the reservoir.