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.
Delaware Obligatory Well, also known as Delaware Obligatory Oil or Gas Well, is a term used in the oil and gas industry to refer to a specific type of well established in the state of Delaware, United States. These wells are designed to produce oil or natural gas from underground reserves that are located within the state's boundaries. The Delaware Obligatory Well plays a crucial role in tapping into the region's oil and gas resources, contributing to the overall energy production and economy of the state. These wells adhere to specific obligations and regulations set by the Delaware Department of Natural Resources and Environmental Control (DN REC) to ensure safe and responsible extraction practices. There are different types of Delaware Obligatory Wells that are categorized based on their purpose and the substances being extracted: 1. Delaware Obligatory Oil Well: This type of well focuses primarily on extracting crude oil from underground reservoirs. Companies drilling Delaware Obligatory Oil Wells must adhere to the Delaware Oil and Gas Act and follow industry-standard practices optimizing production and minimize environmental impact. 2. Delaware Obligatory Gas Well: In contrast to the oil focus, these wells are primarily aimed at extracting natural gas. Natural gas reserves in Delaware can provide an abundant and relatively clean source of energy. Operators of Delaware Obligatory Gas Wells must follow strict regulations to ensure safety and control emissions. Both types of Delaware Obligatory Wells involve a series of crucial steps, including site selection, obtaining drilling permits, conducting seismic surveys, drilling the well bore, and implementing various extraction techniques such as hydraulic fracturing (fracking) if required. Monitoring and maintenance of these wells are also essential to ensure ongoing operational efficiency and compliance with regulations. Delaware Obligatory Wells contribute significantly to the state's energy industry, job creation, and economic growth. Through responsible extraction practices, they provide the necessary resources to meet the energy demands of Delaware and potentially contribute to regional and national energy independence. Moreover, revenue generated from oil and gas production helps support infrastructure development, environmental conservation efforts, and various community programs. In conclusion, Delaware Obligatory Wells play a vital role in harnessing the state's oil and gas resources. Their different types, including Delaware Obligatory Oil Wells and Delaware Obligatory Gas Wells, contribute to the overall energy production while adhering to strict regulations aimed at environmental protection and safety. These wells are vital assets in ensuring sustainable energy development and economic growth in Delaware.Delaware Obligatory Well, also known as Delaware Obligatory Oil or Gas Well, is a term used in the oil and gas industry to refer to a specific type of well established in the state of Delaware, United States. These wells are designed to produce oil or natural gas from underground reserves that are located within the state's boundaries. The Delaware Obligatory Well plays a crucial role in tapping into the region's oil and gas resources, contributing to the overall energy production and economy of the state. These wells adhere to specific obligations and regulations set by the Delaware Department of Natural Resources and Environmental Control (DN REC) to ensure safe and responsible extraction practices. There are different types of Delaware Obligatory Wells that are categorized based on their purpose and the substances being extracted: 1. Delaware Obligatory Oil Well: This type of well focuses primarily on extracting crude oil from underground reservoirs. Companies drilling Delaware Obligatory Oil Wells must adhere to the Delaware Oil and Gas Act and follow industry-standard practices optimizing production and minimize environmental impact. 2. Delaware Obligatory Gas Well: In contrast to the oil focus, these wells are primarily aimed at extracting natural gas. Natural gas reserves in Delaware can provide an abundant and relatively clean source of energy. Operators of Delaware Obligatory Gas Wells must follow strict regulations to ensure safety and control emissions. Both types of Delaware Obligatory Wells involve a series of crucial steps, including site selection, obtaining drilling permits, conducting seismic surveys, drilling the well bore, and implementing various extraction techniques such as hydraulic fracturing (fracking) if required. Monitoring and maintenance of these wells are also essential to ensure ongoing operational efficiency and compliance with regulations. Delaware Obligatory Wells contribute significantly to the state's energy industry, job creation, and economic growth. Through responsible extraction practices, they provide the necessary resources to meet the energy demands of Delaware and potentially contribute to regional and national energy independence. Moreover, revenue generated from oil and gas production helps support infrastructure development, environmental conservation efforts, and various community programs. In conclusion, Delaware Obligatory Wells play a vital role in harnessing the state's oil and gas resources. Their different types, including Delaware Obligatory Oil Wells and Delaware Obligatory Gas Wells, contribute to the overall energy production while adhering to strict regulations aimed at environmental protection and safety. These wells are vital assets in ensuring sustainable energy development and economic growth in Delaware.
