This is a provision for an Operating Agreement that concerns the Assignment of rights to an obligatory well. It provides the assignment options if any proposed operations are necessary to maintain a Lease covered by the Agreement in force or an agreement to earn a lease(s) which would otherwise expire unless operations are conducted.
Colorado Obligatory Well is a term used in the oil and gas industry in the state of Colorado. This detailed description will explain what Colorado Obligatory Wells are, their purpose, and different types commonly found in the region. Keywords: Colorado Obligatory Well, oil and gas industry, purpose, types, Colorado. Colorado Obligatory Wells are a crucial element of oil and gas exploration and production activities in the state of Colorado. These wells are designated by the Colorado Oil and Gas Conservation Commission (COG CC) as mandatory or obligatory due to specific legal or operational requirements. The primary purpose of Colorado Obligatory Wells is to ensure the responsible extraction, production, and management of oil and gas resources in the state, while simultaneously protecting the environment, public health, and safety. Various types of Colorado Obligatory Wells exist, each serving a unique purpose within the industry. Additionally, these wells adhere to strict adherence to regulations set forth by the COG CC. 1. Exploration Wells: These wells are drilled in areas where oil and gas reserves are not yet known. Exploration wells are crucial in determining the presence, quality, and quantity of hydrocarbon deposits beneath the surface. Data obtained from these wells assists in future development decisions. 2. Production Wells: Once the presence of oil or gas is confirmed through exploration wells, production wells are drilled and developed. These wells allow the extraction of hydrocarbon resources from the reservoir and are designed to facilitate their efficient and safe production. 3. Injection Wells: Injection wells are a specialized type of Colorado Obligatory Well used for subsurface waste disposal or enhanced oil recovery techniques. These wells typically inject fluids, such as wastewater or carbon dioxide, deep into the underground formation, either for storage or to enhance and prolong oil recovery. 4. Observation Wells: These wells serve as monitoring points for specific reservoirs and formations. They are equipped with various instruments and sensors that measure pressure, temperature, and fluid composition. The data collected from observation wells helps evaluate the behavior of the reservoir and aids in making informed decisions regarding overall production and environmental protection. 5. Plugging and Abandonment Wells: After a well reaches the end of its productive life or when it becomes uneconomical to operate, it must be properly plugged and abandoned to prevent any potential environmental contamination. Plugging and abandonment wells follow a strict procedure to ensure the safe sealing and securing of the well bore to prevent any fluid migration or surface hazards. These different types of Colorado Obligatory Wells showcase the comprehensive approach taken by the industry and regulatory bodies in Colorado to manage oil and gas operations responsibly. By implementing and enforcing these obligations, the state continues to balance energy production with environmental protection, contributing to sustainable development in Colorado's diverse landscapes.
