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Communitization agreements are used to combine multiple small tracts that contain one or more federal or Indian leases to form the spacing unit required to comply with the well spacing regulations of the applicable jurisdiction. Communitization agreements require prior government approval.
The Mineral Leasing Act of 1920, as amended, and the Mineral Leasing Act for Acquired Lands of 1947, as amended, give the Bureau of Land Management (BLM) responsibility for oil and gas leasing on about 564 million acres of BLM, national forest, and other Federal lands, as well as State and private surface lands where
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