This form is used for the Designation of a Successor Operator pursuant to a specified Section of a Communitization Agreement. First Party is designated by Second Parties as Operator of the communitized area, and First Party desires to assume all the rights, duties, and obligations of Operator under the Communitization Agreement.
This Agreement is incorporated into this Designation by reference and made a part of it as fully and effectively as though the Agreement were expressly set forth in this Designation.
Arkansas Designation of Successor Operator: The Arkansas Designation of Successor Operator refers to a legal document that outlines the process by which a new operator is chosen to take over the operation and management of an oil or gas well in Arkansas. This designation becomes effective when the existing operator is unable or unwilling to continue operating the well. Keywords: Arkansas, Designation of Successor Operator, oil, gas, well, operation, management. Commoditization Agreement: A Commoditization Agreement in Arkansas is a contractual arrangement that allows multiple oil and gas leaseholders or working interest owners within a specified area (comm unitized unit) to pool their interests and jointly develop and produce hydrocarbons from a common reservoir. This agreement helps prevent waste and allows for more efficient and coordinated oil and gas operations. Keywords: Commoditization Agreement, Arkansas, oil, gas, leaseholders, working interest owners, pooling, reservoir, hydrocarbons, waste, operations. Different Types of Arkansas Designation of Successor Operator, Commoditization Agreements: 1. Voluntary Commoditization Agreement: This type of commoditization agreement occurs when all leaseholders or working interest owners within a specified area voluntarily agree to pool their interests and jointly operate the wells. This agreement is typically reached to enhance efficiency and optimize production. 2. Compulsory Commoditization Agreement: In some cases, a compulsory commoditization agreement may be imposed by the Arkansas Oil and Gas Commission. This occurs when some leaseholders or working interest owners within a specified area do not willingly agree to participate in the pooling arrangement, but their participation is necessary to prevent waste or maximize recovery. The commission can order the integration of interests and the creation of a compulsory commoditization agreement. 3. Designation of Successor Operator Agreement: Under this agreement, a designated successor operator is named to replace the existing operator when they are unable or unwilling to continue managing the oil or gas well. This agreement outlines the process and conditions for this transition, ensuring uninterrupted operations and compliance with state regulations. Note: It is essential to consult legal experts and refer to the specific laws and regulations in Arkansas for accurate and up-to-date information regarding Designation of Successor Operator and Commoditization Agreements in the state.Arkansas Designation of Successor Operator: The Arkansas Designation of Successor Operator refers to a legal document that outlines the process by which a new operator is chosen to take over the operation and management of an oil or gas well in Arkansas. This designation becomes effective when the existing operator is unable or unwilling to continue operating the well. Keywords: Arkansas, Designation of Successor Operator, oil, gas, well, operation, management. Commoditization Agreement: A Commoditization Agreement in Arkansas is a contractual arrangement that allows multiple oil and gas leaseholders or working interest owners within a specified area (comm unitized unit) to pool their interests and jointly develop and produce hydrocarbons from a common reservoir. This agreement helps prevent waste and allows for more efficient and coordinated oil and gas operations. Keywords: Commoditization Agreement, Arkansas, oil, gas, leaseholders, working interest owners, pooling, reservoir, hydrocarbons, waste, operations. Different Types of Arkansas Designation of Successor Operator, Commoditization Agreements: 1. Voluntary Commoditization Agreement: This type of commoditization agreement occurs when all leaseholders or working interest owners within a specified area voluntarily agree to pool their interests and jointly operate the wells. This agreement is typically reached to enhance efficiency and optimize production. 2. Compulsory Commoditization Agreement: In some cases, a compulsory commoditization agreement may be imposed by the Arkansas Oil and Gas Commission. This occurs when some leaseholders or working interest owners within a specified area do not willingly agree to participate in the pooling arrangement, but their participation is necessary to prevent waste or maximize recovery. The commission can order the integration of interests and the creation of a compulsory commoditization agreement. 3. Designation of Successor Operator Agreement: Under this agreement, a designated successor operator is named to replace the existing operator when they are unable or unwilling to continue managing the oil or gas well. This agreement outlines the process and conditions for this transition, ensuring uninterrupted operations and compliance with state regulations. Note: It is essential to consult legal experts and refer to the specific laws and regulations in Arkansas for accurate and up-to-date information regarding Designation of Successor Operator and Commoditization Agreements in the state.
