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.
Guam 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 establishes the guidelines and terms for extracting and producing resources from various formations in a shared well bore in Guam. This agreement is necessary when multiple owners hold leasehold interests in the same location, but their ownership rights differ based on depth. The Guam Commingling Agreement ensures that all working owners have the opportunity to benefit from the production of resources by allowing them to commingle or combine the extracted substances from different formations within the same well bore. This agreement is especially common in areas where the subsurface formations consist of multiple layers with varying resource potentials. Different types of Guam 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 include: 1. Depth-Based Ownership Variations: This type of agreement addresses situations where different owners have varying leasehold ownership rights based on depth increments. For example, one owner may own the rights to resources between 500 and 1000 feet, while another owner may hold rights to resources between 1000 and 2000 feet. 2. Formation-Based Ownership Variations: In this scenario, the agreement specifies the ownership rights of each working owner based on specific formations encountered in the well bore. For instance, one owner may have rights to production from the sandstone formation, while another may hold rights to production from the limestone formation. 3. Extraction and Distribution Guidelines: The agreement also outlines the procedures for extracting resources from the different formations and the allocation of the production among the working owners. These guidelines ensure fair distribution of resources and promote efficient operations within the shared well bore. 4. Reporting and Auditing Requirements: To maintain transparency and accountability, the agreement may include provisions for regular reporting and auditing of production volumes and revenue distributions. This ensures that all parties involved are accurately informed about the production activities and are receiving their entitled share. 5. Dispute Resolution Mechanisms: In the event of conflicts or disagreements regarding the agreement's interpretation or implementation, the document may include provisions for dispute resolution mechanisms such as arbitration or mediation. These mechanisms provide a structured process to resolve conflicts without resorting to lengthy and costly legal proceedings. The Guam Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth serves as a crucial legal framework for enabling efficient resource extraction, promoting collaboration among working owners, and ensuring equitable distribution of production.Guam 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 establishes the guidelines and terms for extracting and producing resources from various formations in a shared well bore in Guam. This agreement is necessary when multiple owners hold leasehold interests in the same location, but their ownership rights differ based on depth. The Guam Commingling Agreement ensures that all working owners have the opportunity to benefit from the production of resources by allowing them to commingle or combine the extracted substances from different formations within the same well bore. This agreement is especially common in areas where the subsurface formations consist of multiple layers with varying resource potentials. Different types of Guam 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 include: 1. Depth-Based Ownership Variations: This type of agreement addresses situations where different owners have varying leasehold ownership rights based on depth increments. For example, one owner may own the rights to resources between 500 and 1000 feet, while another owner may hold rights to resources between 1000 and 2000 feet. 2. Formation-Based Ownership Variations: In this scenario, the agreement specifies the ownership rights of each working owner based on specific formations encountered in the well bore. For instance, one owner may have rights to production from the sandstone formation, while another may hold rights to production from the limestone formation. 3. Extraction and Distribution Guidelines: The agreement also outlines the procedures for extracting resources from the different formations and the allocation of the production among the working owners. These guidelines ensure fair distribution of resources and promote efficient operations within the shared well bore. 4. Reporting and Auditing Requirements: To maintain transparency and accountability, the agreement may include provisions for regular reporting and auditing of production volumes and revenue distributions. This ensures that all parties involved are accurately informed about the production activities and are receiving their entitled share. 5. Dispute Resolution Mechanisms: In the event of conflicts or disagreements regarding the agreement's interpretation or implementation, the document may include provisions for dispute resolution mechanisms such as arbitration or mediation. These mechanisms provide a structured process to resolve conflicts without resorting to lengthy and costly legal proceedings. The Guam Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth serves as a crucial legal framework for enabling efficient resource extraction, promoting collaboration among working owners, and ensuring equitable distribution of production.
