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 Georgia Relinquishment Provision — Horizontal Well is an important aspect of oil and gas exploration and production in the state of Georgia. This provision refers to the process by which an operator relinquishes or abandons a horizontal well after its productive life cycle has ended or if it is no longer economically viable to operate. A horizontal well is a type of well bore that is drilled vertically to a certain depth and then deviated horizontally in order to tap into oil or gas reservoirs that are located within a specific geological formation. It is typically used when conventional vertical well drilling is not as effective in extracting resources from the reservoir. The Georgia Relinquishment Provision ensures that once a horizontal well is no longer productive, the operator is responsible for properly sealing the well and cleaning up any associated infrastructure in accordance with state regulations. This is crucial to preventing any potential environmental hazards and maintaining the overall integrity of the oil and gas industry. There are different types of Georgia Relinquishment Provision — Horizontal Wells based on the nature of the well and the specific requirements for abandonment. These variations may include: 1. Conventional Horizontal Well Relinquishment: This type of relinquishment provision refers to the abandonment of a horizontal well that has completed its economic or productive lifespan. The operator must follow the prescribed procedures and guidelines to safely seal the well and reclaim the site. 2. Statutory Abandonment of Horizontal Well: In certain cases, a horizontal well may need to be abandoned due to non-compliance with regulatory or operational requirements. This type of relinquishment provision is enforced by Georgia state statutes and requires the operator to take appropriate measures for well abandonment. 3. Economic Relinquishment of Horizontal Well: Occasionally, a horizontal well may become economically unviable due to declining production rates or changes in market conditions. In such cases, the operator may choose to voluntarily relinquish the well rather than continue operations at a loss. Regardless of the specific type of relinquishment, it is crucial that operators adhere to environmental and safety regulations while decommissioning the horizontal well. This includes proper plugging and abandonment techniques, site restoration, and ensuring the integrity of surrounding aquifers and natural resources. In summary, the Georgia Relinquishment Provision — Horizontal Well is a critical component of the oil and gas industry in Georgia. It ensures that operators responsibly abandon horizontal wells that have reached the end of their productive lives or are no longer economically viable. Various types of relinquishment provisions exist, each with its own set of requirements and guidelines for proper well abandonment.The Georgia Relinquishment Provision — Horizontal Well is an important aspect of oil and gas exploration and production in the state of Georgia. This provision refers to the process by which an operator relinquishes or abandons a horizontal well after its productive life cycle has ended or if it is no longer economically viable to operate. A horizontal well is a type of well bore that is drilled vertically to a certain depth and then deviated horizontally in order to tap into oil or gas reservoirs that are located within a specific geological formation. It is typically used when conventional vertical well drilling is not as effective in extracting resources from the reservoir. The Georgia Relinquishment Provision ensures that once a horizontal well is no longer productive, the operator is responsible for properly sealing the well and cleaning up any associated infrastructure in accordance with state regulations. This is crucial to preventing any potential environmental hazards and maintaining the overall integrity of the oil and gas industry. There are different types of Georgia Relinquishment Provision — Horizontal Wells based on the nature of the well and the specific requirements for abandonment. These variations may include: 1. Conventional Horizontal Well Relinquishment: This type of relinquishment provision refers to the abandonment of a horizontal well that has completed its economic or productive lifespan. The operator must follow the prescribed procedures and guidelines to safely seal the well and reclaim the site. 2. Statutory Abandonment of Horizontal Well: In certain cases, a horizontal well may need to be abandoned due to non-compliance with regulatory or operational requirements. This type of relinquishment provision is enforced by Georgia state statutes and requires the operator to take appropriate measures for well abandonment. 3. Economic Relinquishment of Horizontal Well: Occasionally, a horizontal well may become economically unviable due to declining production rates or changes in market conditions. In such cases, the operator may choose to voluntarily relinquish the well rather than continue operations at a loss. Regardless of the specific type of relinquishment, it is crucial that operators adhere to environmental and safety regulations while decommissioning the horizontal well. This includes proper plugging and abandonment techniques, site restoration, and ensuring the integrity of surrounding aquifers and natural resources. In summary, the Georgia Relinquishment Provision — Horizontal Well is a critical component of the oil and gas industry in Georgia. It ensures that operators responsibly abandon horizontal wells that have reached the end of their productive lives or are no longer economically viable. Various types of relinquishment provisions exist, each with its own set of requirements and guidelines for proper well abandonment.
