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.
Indiana Obligatory Well is a term commonly used in the oil and gas industry to refer to a type of well that is required by law to be drilled in certain areas of the state of Indiana. This well type is designed to monitor and regulate the extraction of oil, gas, or other minerals from underground reservoirs and ensure compliance with environmental regulations. The Indiana Obligatory Well serves as a critical component of the state's regulatory framework for the extraction industry. It helps to monitor the quantity and quality of extracted resources, prevent contamination of underground water sources, and mitigate any potential negative impacts on the environment and public health. There are different types of Indiana Obligatory Wells, each serving a specific purpose depending on the nature of the resource being extracted. Some of these well types include: 1. Indiana Obligatory Oil Well: This type of well is primarily used for the extraction of oil from underground reservoirs. It is equipped with specialized equipment, such as pumps and separators, to facilitate the efficient extraction and collection of oil. 2. Indiana Obligatory Gas Well: These wells are specifically designed for extracting natural gas from underground reservoirs. They are often deeper than oil wells and utilize various techniques, such as hydraulic fracturing (fracking), to enhance gas extraction. 3. Indiana Obligatory Water Well: Although not directly related to the extraction industry, this well type is still covered under the Indiana Obligatory Well regulations. Water wells are drilled to access underground water sources for various purposes, including residential, agricultural, or industrial use. These wells must meet specific requirements to ensure water quality and safety. 4. Indiana Obligatory Monitoring Well: These wells are utilized to monitor the environmental impact of resource extraction activities. They are often drilled near extraction sites and equipped with instruments to measure parameters such as groundwater levels, quality, and potential contamination. 5. Indiana Obligatory Injection Well: In cases where enhanced oil or gas recovery techniques are employed, injection wells are used to inject fluids, such as water or chemicals, into the underground reservoirs. These wells help maintain reservoir pressure and enhance resource extraction. It is essential for companies and individuals involved in the oil, gas, and mineral extraction industries in Indiana to comply with the regulations and guidelines regarding Indiana Obligatory Wells. Failure to do so can result in severe penalties, including fines and legal consequences. Therefore, understanding and adhering to the specific requirements of each well type is crucial for operating within the confines of the law and promoting sustainable resource extraction practices.
