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 Illinois Relinquishment Provision — Horizontal Well is a regulatory measure specific to the state of Illinois, United States. This provision primarily pertains to the drilling and operation of horizontal wells for oil and gas extraction. Horizontal drilling refers to the technique of drilling a well bore horizontally, parallel to the rock formation containing the desired hydrocarbon resources. The purpose of the Illinois Relinquishment Provision is to ensure responsible and efficient oil and gas development while minimizing environmental impact and land disturbance. This provision mandates that operators relinquish certain areas of the drilling lease once the horizontal well reaches a specific distance or target point, commonly referred to as the "Relinquishment Depth." By relinquishing the surface area, operators allow for other potential wells to be developed in the same lease and prevent waste of natural resources. The specific requirements and conditions of the Illinois Relinquishment Provision — Horizontal Well may vary depending on the location, geological formations, and regulatory framework. Different types of Illinois Relinquishment Provisions may exist, depending on factors such as the depth of the target formation, the specific lease agreement, and any additional regulations imposed by local and state authorities. Some potential types of Illinois Relinquishment Provisions — Horizontal Well include: 1. Depth-based Relinquishment: This type of provision specifies a predetermined depth at which the operator must relinquish a certain portion of the lease. For example, once the well reaches a depth of 5,000 feet, the operator may need to relinquish the surface area above that depth. 2. Distance-based Relinquishment: In this case, the provision may require relinquishment based on horizontal distance from the wellhead or target point. For instance, the operator may need to relinquish the surface area within a certain distance from the well bore, such as 500 feet. 3. Zone-specific Relinquishment: Some provisions may only apply to specific geological zones or formations. For instance, if the well bore passes through multiple formations, the operator may be required to relinquish the surface area above a particular formation while continuing to operate in subsequent zones. 4. Incremental Relinquishment: This type of provision may require operators to relinquish portions of the lease in stages or increments as the well reaches certain depths or distances. For example, relinquishment at 3,000 feet, then at 6,000 feet, and so on. Operators engaging in horizontal drilling under the Illinois Relinquishment Provision should be aware of the specific requirements applicable to their respective locations. Compliance with these provisions ensures proper resource utilization, environmental stewardship, and adherence to state regulations governing oil and gas exploration activities.The Illinois Relinquishment Provision — Horizontal Well is a regulatory measure specific to the state of Illinois, United States. This provision primarily pertains to the drilling and operation of horizontal wells for oil and gas extraction. Horizontal drilling refers to the technique of drilling a well bore horizontally, parallel to the rock formation containing the desired hydrocarbon resources. The purpose of the Illinois Relinquishment Provision is to ensure responsible and efficient oil and gas development while minimizing environmental impact and land disturbance. This provision mandates that operators relinquish certain areas of the drilling lease once the horizontal well reaches a specific distance or target point, commonly referred to as the "Relinquishment Depth." By relinquishing the surface area, operators allow for other potential wells to be developed in the same lease and prevent waste of natural resources. The specific requirements and conditions of the Illinois Relinquishment Provision — Horizontal Well may vary depending on the location, geological formations, and regulatory framework. Different types of Illinois Relinquishment Provisions may exist, depending on factors such as the depth of the target formation, the specific lease agreement, and any additional regulations imposed by local and state authorities. Some potential types of Illinois Relinquishment Provisions — Horizontal Well include: 1. Depth-based Relinquishment: This type of provision specifies a predetermined depth at which the operator must relinquish a certain portion of the lease. For example, once the well reaches a depth of 5,000 feet, the operator may need to relinquish the surface area above that depth. 2. Distance-based Relinquishment: In this case, the provision may require relinquishment based on horizontal distance from the wellhead or target point. For instance, the operator may need to relinquish the surface area within a certain distance from the well bore, such as 500 feet. 3. Zone-specific Relinquishment: Some provisions may only apply to specific geological zones or formations. For instance, if the well bore passes through multiple formations, the operator may be required to relinquish the surface area above a particular formation while continuing to operate in subsequent zones. 4. Incremental Relinquishment: This type of provision may require operators to relinquish portions of the lease in stages or increments as the well reaches certain depths or distances. For example, relinquishment at 3,000 feet, then at 6,000 feet, and so on. Operators engaging in horizontal drilling under the Illinois Relinquishment Provision should be aware of the specific requirements applicable to their respective locations. Compliance with these provisions ensures proper resource utilization, environmental stewardship, and adherence to state regulations governing oil and gas exploration activities.
