This form is used in the event any part to this Agreement elects not to participate in a Horizontal Exploratory Well, the non-participating party shall, on commencement of operations for the well, relinquish to the participating party one hundred percent (100%) of its rights, title, and interests in and to that portion of the Contract Area included within the Drilling Unit for the well and one hundred percent (100%) of the party’s rights, title, and interests in and to that portion of the Contract Area.
The Arizona Relinquishment Provision — Horizontal Well refers to a specific regulation related to oil and gas exploration and extraction in the state of Arizona. This provision allows operators to relinquish part or all of their horizontal well acreage after a certain period of time if the well proves to be unproductive or uneconomical. The Arizona Relinquishment Provision applies specifically to horizontal wells, which are wells drilled at a non-vertical angle to reach and extract oil, gas, or other resources from horizontally layered rock formations. This technique allows for a larger productive area to be accessed compared to conventional vertical wells. There are different types of Arizona Relinquishment Provisions for Horizontal Wells based on the specific conditions and parameters set by the Arizona Oil and Gas Conservation Commission (AO GCC). These provisions may include criteria such as production levels, economic viability, or defined timeframes for relinquishment. Some common types of Arizona Relinquishment Provisions include: 1. Production-based Relinquishment: In this type, operators may be required to relinquish the lease or part of the well acreage if the well does not achieve a certain level of production within a specified period. This provision ensures that wells that do not meet production expectations are abandoned, allowing other operators to explore potential resources in the area. 2. Economic-based Relinquishment: This provision may be triggered when the well's operation becomes economically unfeasible, taking into account factors such as market prices, operational costs, and the expected return on investment. Operators may be required to relinquish the lease if it does not meet the predetermined economic criteria. 3. Time-based Relinquishment: Some Arizona Relinquishment Provisions set a specific timeframe for operators to demonstrate productive results or economic viability. If the well fails to meet the defined criteria within the specified period, the operator may be required to relinquish part or all of the acreage to prevent inactive acreage from being held indefinitely. It is worth noting that the specific requirements and conditions for the Arizona Relinquishment Provision — Horizontal Well may vary depending on the evolving regulations and industry standards. Operators must comply with the AO GCC's guidelines and ensure that they meet the defined criteria to avoid relinquishing their acreage prematurely. Regular monitoring, evaluation, and reporting of well performance are essential to determine compliance with these provisions and to make informed decisions regarding the relinquishment of well acreage.The Arizona Relinquishment Provision — Horizontal Well refers to a specific regulation related to oil and gas exploration and extraction in the state of Arizona. This provision allows operators to relinquish part or all of their horizontal well acreage after a certain period of time if the well proves to be unproductive or uneconomical. The Arizona Relinquishment Provision applies specifically to horizontal wells, which are wells drilled at a non-vertical angle to reach and extract oil, gas, or other resources from horizontally layered rock formations. This technique allows for a larger productive area to be accessed compared to conventional vertical wells. There are different types of Arizona Relinquishment Provisions for Horizontal Wells based on the specific conditions and parameters set by the Arizona Oil and Gas Conservation Commission (AO GCC). These provisions may include criteria such as production levels, economic viability, or defined timeframes for relinquishment. Some common types of Arizona Relinquishment Provisions include: 1. Production-based Relinquishment: In this type, operators may be required to relinquish the lease or part of the well acreage if the well does not achieve a certain level of production within a specified period. This provision ensures that wells that do not meet production expectations are abandoned, allowing other operators to explore potential resources in the area. 2. Economic-based Relinquishment: This provision may be triggered when the well's operation becomes economically unfeasible, taking into account factors such as market prices, operational costs, and the expected return on investment. Operators may be required to relinquish the lease if it does not meet the predetermined economic criteria. 3. Time-based Relinquishment: Some Arizona Relinquishment Provisions set a specific timeframe for operators to demonstrate productive results or economic viability. If the well fails to meet the defined criteria within the specified period, the operator may be required to relinquish part or all of the acreage to prevent inactive acreage from being held indefinitely. It is worth noting that the specific requirements and conditions for the Arizona Relinquishment Provision — Horizontal Well may vary depending on the evolving regulations and industry standards. Operators must comply with the AO GCC's guidelines and ensure that they meet the defined criteria to avoid relinquishing their acreage prematurely. Regular monitoring, evaluation, and reporting of well performance are essential to determine compliance with these provisions and to make informed decisions regarding the relinquishment of well acreage.
