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.
Arizona Designation of Successor Operator is a legal document that outlines the process of selecting a new operator for an oil or gas well or lease when the existing operator can no longer perform their duties. This agreement allows the transfer of operational responsibilities to a designated party who will continue the management and production of the well or lease. It ensures the uninterrupted operation of the site and compliance with state regulations. The Arizona Designation of Successor Operator is designed to handle situations where the current operator is unable to fulfill their obligations due to bankruptcy, insolvency, or any other reason specified in the agreement. It provides a systematic framework for the selection of a successor operator, ensuring a smooth transition without disrupting the production process. Commoditization Agreement is another important aspect of oil and gas operations in Arizona. This agreement allows the pooling or combining of adjacent oil and gas leases or units, in order to maximize efficiency and extract resources more effectively. When multiple leases or units share a common underground hydrocarbon reservoir, a commoditization agreement is necessary to coordinate operations and share production revenues. There are different types of Arizona Designation of Successor Operator, Commoditization Agreements, as outlined by the Arizona Oil and Gas Conservation Commission (AO GCC). Some common types include: 1. Voluntary Commoditization Agreement: This agreement is voluntarily entered into by the participating leaseholders or operators to jointly develop and produce hydrocarbon resources on adjacent lands. It outlines the terms and conditions for pooling resources and sharing costs and revenues. 2. Compulsory Commoditization Agreement: In case the voluntary agreement cannot be reached between interested parties, the AO GCC has the authority to impose a compulsory commoditization agreement. This agreement requires non-consenting leaseholders to participate in the commoditization unit and share production revenues according to their ownership interests. 3. Designation of Successor Operator Agreement: This agreement specifically focuses on the appointment of a new operator in the event of the current operator's inability to continue operations. It defines the process for selecting the successor operator and ensures a seamless transition of responsibilities. In conclusion, the Arizona Designation of Successor Operator, Commoditization Agreement is an integral part of the oil and gas industry in Arizona. It allows for the smooth transfer of operational responsibilities in case the current operator is unable to fulfill their duties. By pooling resources and coordinating operations, commoditization agreements maximize efficiency and enable the optimal extraction of hydrocarbon resources.Arizona Designation of Successor Operator is a legal document that outlines the process of selecting a new operator for an oil or gas well or lease when the existing operator can no longer perform their duties. This agreement allows the transfer of operational responsibilities to a designated party who will continue the management and production of the well or lease. It ensures the uninterrupted operation of the site and compliance with state regulations. The Arizona Designation of Successor Operator is designed to handle situations where the current operator is unable to fulfill their obligations due to bankruptcy, insolvency, or any other reason specified in the agreement. It provides a systematic framework for the selection of a successor operator, ensuring a smooth transition without disrupting the production process. Commoditization Agreement is another important aspect of oil and gas operations in Arizona. This agreement allows the pooling or combining of adjacent oil and gas leases or units, in order to maximize efficiency and extract resources more effectively. When multiple leases or units share a common underground hydrocarbon reservoir, a commoditization agreement is necessary to coordinate operations and share production revenues. There are different types of Arizona Designation of Successor Operator, Commoditization Agreements, as outlined by the Arizona Oil and Gas Conservation Commission (AO GCC). Some common types include: 1. Voluntary Commoditization Agreement: This agreement is voluntarily entered into by the participating leaseholders or operators to jointly develop and produce hydrocarbon resources on adjacent lands. It outlines the terms and conditions for pooling resources and sharing costs and revenues. 2. Compulsory Commoditization Agreement: In case the voluntary agreement cannot be reached between interested parties, the AO GCC has the authority to impose a compulsory commoditization agreement. This agreement requires non-consenting leaseholders to participate in the commoditization unit and share production revenues according to their ownership interests. 3. Designation of Successor Operator Agreement: This agreement specifically focuses on the appointment of a new operator in the event of the current operator's inability to continue operations. It defines the process for selecting the successor operator and ensures a seamless transition of responsibilities. In conclusion, the Arizona Designation of Successor Operator, Commoditization Agreement is an integral part of the oil and gas industry in Arizona. It allows for the smooth transfer of operational responsibilities in case the current operator is unable to fulfill their duties. By pooling resources and coordinating operations, commoditization agreements maximize efficiency and enable the optimal extraction of hydrocarbon resources.
