This form is used when the parties own undivided leasehold interests in the Lease as to depths from the surface of the ground to a Specific Depth. The parties acknowledge that the production from a well on the leasehold interest will be obtained from depths in which the ownership is not common. Thus, the parties find it necessary to enter into this Agreement to enable the parties to each be paid a proportionate part of the commingled production from the separate depths in which they own interests.
A Georgia Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth is a legal document that outlines the terms and conditions for sharing production and revenue from multiple formations within the same well bore. This agreement is necessary when leasehold ownership varies as to depth, meaning different owners have rights to specific depths within the well. The purpose of this commingling agreement is to establish a fair and equitable distribution of production from different formations, ensuring all working owners receive their entitled share based on their respective leasehold ownership depth. It provides a framework for cooperation, coordination, and transparency among the working owners, preventing any disputes or conflicts that may arise regarding the joint production. By signing this agreement, the working owners agree to commingle the production from various formations within the same well bore. This means that the produced hydrocarbons from different depths will be mixed together and jointly marketed. The revenue generated from the sales will then be distributed proportionally among the working owners, considering their leasehold ownership interests in the different formations. This commingling agreement addresses various important aspects, including the allocation of production, royalty payments, cost-sharing, accounting procedures, and dispute resolution mechanisms. It may define specific terms for commingling, such as the minimum daily production allowed for each formation or any necessary procedures for testing or measuring the production from different depths. Different types of Georgia Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth may exist depending on the specific circumstances of each well and the agreements reached among the working owners. Some variations may include: 1. Weighted Ownership Agreement: — This agreement allocates ownership proportions based on the relative value of each leasehold interest in the different formations, considering factors like depth, productivity, and potential reserves. 2. Multi-Depth Royalty Agreement: — This agreement outlines a specific royalty percentage or calculation method for each distinct depth within the well bore, allowing for differentiated payments based on leasehold ownership rights at different depths. 3. Common Production Pooling Agreement: — This agreement establishes a common production pool where all working owners contribute their respective production from different formations, and the total production is jointly distributed based on leasehold interests. 4. Depth-Specific Cost Allocation Agreement: — This agreement defines how the costs associated with drilling, completion, operation, and maintenance will be allocated among the working owners based on their ownership rights at different depths. In conclusion, a Georgia Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth is a vital legal instrument that ensures fair sharing of production and revenue among working owners with differing depths of leasehold ownership. The specific type of agreement may vary depending on the circumstances, but its main purpose is to promote cooperation, minimize conflicts, and establish clear guidelines for efficient and transparent operation of jointly owned wells.A Georgia Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth is a legal document that outlines the terms and conditions for sharing production and revenue from multiple formations within the same well bore. This agreement is necessary when leasehold ownership varies as to depth, meaning different owners have rights to specific depths within the well. The purpose of this commingling agreement is to establish a fair and equitable distribution of production from different formations, ensuring all working owners receive their entitled share based on their respective leasehold ownership depth. It provides a framework for cooperation, coordination, and transparency among the working owners, preventing any disputes or conflicts that may arise regarding the joint production. By signing this agreement, the working owners agree to commingle the production from various formations within the same well bore. This means that the produced hydrocarbons from different depths will be mixed together and jointly marketed. The revenue generated from the sales will then be distributed proportionally among the working owners, considering their leasehold ownership interests in the different formations. This commingling agreement addresses various important aspects, including the allocation of production, royalty payments, cost-sharing, accounting procedures, and dispute resolution mechanisms. It may define specific terms for commingling, such as the minimum daily production allowed for each formation or any necessary procedures for testing or measuring the production from different depths. Different types of Georgia Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth may exist depending on the specific circumstances of each well and the agreements reached among the working owners. Some variations may include: 1. Weighted Ownership Agreement: — This agreement allocates ownership proportions based on the relative value of each leasehold interest in the different formations, considering factors like depth, productivity, and potential reserves. 2. Multi-Depth Royalty Agreement: — This agreement outlines a specific royalty percentage or calculation method for each distinct depth within the well bore, allowing for differentiated payments based on leasehold ownership rights at different depths. 3. Common Production Pooling Agreement: — This agreement establishes a common production pool where all working owners contribute their respective production from different formations, and the total production is jointly distributed based on leasehold interests. 4. Depth-Specific Cost Allocation Agreement: — This agreement defines how the costs associated with drilling, completion, operation, and maintenance will be allocated among the working owners based on their ownership rights at different depths. In conclusion, a Georgia Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth is a vital legal instrument that ensures fair sharing of production and revenue among working owners with differing depths of leasehold ownership. The specific type of agreement may vary depending on the circumstances, but its main purpose is to promote cooperation, minimize conflicts, and establish clear guidelines for efficient and transparent operation of jointly owned wells.
