Communitization

{
  "id": "MLC-T-OAG-000768",
  "term": "Communitization",
  "field": "Oil and gas",
  "definition": "The pooling of small or irregularly shaped tracts of land into a single drilling unit to allow for efficient development and production of oil and gas. This process is often mandated by state regulatory agencies to prevent waste and protect correlative rights, especially when a well drains hydrocarbons from multiple ownership tracts. All owners within the unit share in production based on their acreage contribution.",
  "subject": "Oil and Gas Business",
  "url": "https://mlchart.com/terminology/oil-and-gas/communitization/"
}