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.
Illinois Obligatory Well, also known as simply "Obligatory Well," is a regulatory requirement applicable to the state of Illinois. In Illinois, an Obligatory Well is a type of well that must be drilled and maintained by oil or gas operators to ensure the safe extraction of natural resources, primarily oil and gas, from the underground reserves. These wells are designed and constructed in compliance with strict regulations and guidelines laid out by the Illinois Department of Natural Resources (DNR) and the Illinois Oil and Gas Association (IOWA). The purpose of the Obligatory Well program is to protect public health, safety, and the environment while extracting valuable natural resources. There are several types of Illinois Obligatory Wells, each serving a specific purpose within the oil and gas industry: 1. Production Wells: These wells are responsible for the primary extraction of oil and gas from underground reservoirs. They are drilled using advanced drilling techniques and equipment to access and recover hydrocarbon deposits. 2. Injection Wells: These wells are utilized for the disposal of by-products generated during oil and gas production, such as brine water or other waste materials. Injection wells ensure the proper disposal of these substances to prevent environmental contamination. 3. Re-Injection Wells: Similar to injection wells, re-injection wells are used for reintroducing recovered fluids, usually water, back into the underground formations. This process helps in maintaining reservoir pressure and enhances the overall efficiency of oil and gas extraction. 4. Observation Wells: As the name suggests, observation wells are primarily used for monitoring purposes. They are strategically placed near production or injection wells to monitor pressure changes, fluid levels, and potential leaks. Regular monitoring ensures the compliance of oil and gas operations with environmental regulations. 5. Plugging and Abandonment Wells: When a well reaches the end of its productive life or is no longer viable, it is plugged and abandoned. These wells undergo a specific plugging process to prevent any potential leakage of fluids or gases. Properly plugging and abandoning obsolete wells is critical to prevent endangering groundwater resources and minimize environmental risks. 6. Monitoring Wells: These wells are installed to assess and monitor groundwater conditions near oil and gas operations. Monitoring wells help in evaluating the impact of extraction activities on water resources, enabling operators to promptly address any potential contamination concerns. The Obligatory Well program in Illinois plays a crucial role in regulating and overseeing the safe extraction and disposal of oil and gas resources. By implementing strict guidelines and monitoring mechanisms, the state aims to foster responsible and sustainable oil and gas operations while safeguarding the health and well-being of its citizens and the environment.
