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.
A Kansas Commingling Agreement Among Working Owners is a legal document that governs the production of oil and gas from different formations in the same well bore. This agreement is specifically designed for situations where leasehold ownership varies based on depth, meaning that different parties have ownership rights for different portions of the well. The purpose of a Kansas Commingling Agreement Among Working Owners is to provide clarity and guidelines for the simultaneous production of oil and gas from multiple formations. It ensures that each working owner's rights and interests are protected and that the production activities are conducted in an efficient and coordinated manner. This type of agreement is particularly crucial in Kansas, where the geology of oil and gas fields often consists of multiple formations with varying hydrocarbon potentials at different depths. It allows for the pooling of resources and the extraction of oil and gas from various formations simultaneously, thus maximizing production and minimizing costs. The Kansas Commingling Agreement Among Working Owners typically covers various aspects, including: 1. Ownership rights and percentages: The agreement clearly defines the ownership rights of each working owner for different portions of the well based on depth. It specifies the leasehold interests of each party, ensuring fair allocation of production and revenue. 2. Commingling procedures: The agreement outlines the specific procedures for commingling production from different formations within the same well bore. This includes the technical methods, equipment, and processes required for effectively extracting oil and gas from each formation. 3. Allocation of production: It details the mechanism for allocating the production from each formation among the working owners. This may involve determining the proportions based on ownership percentages, or utilizing production meters and other measuring equipment to track production from each formation accurately. 4. Reporting and accounting: The agreement establishes reporting requirements for each working owner, ensuring transparency and accountability in production reporting. It also includes provisions for revenue distribution and accounting procedures, such as regular audits and financial statements. 5. Liability and indemnity: The agreement addresses potential liabilities and indemnification among the working owners, ensuring that each party assumes responsibility for its actions and any resulting damages or legal claims. Different types of Kansas Commingling Agreement Among Working Owners may exist based on the specific formations involved and the parties involved. Examples could include agreements for the commingling of production from formations like the Mississippian Limestone, the Lansing-Kansas City Formation, or the Ar buckle Formation, among others. In conclusion, a Kansas 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 legally binding instrument that governs the simultaneous production of oil and gas from multiple formations in Kansas oilfields. It ensures fair allocation of production and revenue among working owners, while promoting efficient and coordinated extraction operations.A Kansas Commingling Agreement Among Working Owners is a legal document that governs the production of oil and gas from different formations in the same well bore. This agreement is specifically designed for situations where leasehold ownership varies based on depth, meaning that different parties have ownership rights for different portions of the well. The purpose of a Kansas Commingling Agreement Among Working Owners is to provide clarity and guidelines for the simultaneous production of oil and gas from multiple formations. It ensures that each working owner's rights and interests are protected and that the production activities are conducted in an efficient and coordinated manner. This type of agreement is particularly crucial in Kansas, where the geology of oil and gas fields often consists of multiple formations with varying hydrocarbon potentials at different depths. It allows for the pooling of resources and the extraction of oil and gas from various formations simultaneously, thus maximizing production and minimizing costs. The Kansas Commingling Agreement Among Working Owners typically covers various aspects, including: 1. Ownership rights and percentages: The agreement clearly defines the ownership rights of each working owner for different portions of the well based on depth. It specifies the leasehold interests of each party, ensuring fair allocation of production and revenue. 2. Commingling procedures: The agreement outlines the specific procedures for commingling production from different formations within the same well bore. This includes the technical methods, equipment, and processes required for effectively extracting oil and gas from each formation. 3. Allocation of production: It details the mechanism for allocating the production from each formation among the working owners. This may involve determining the proportions based on ownership percentages, or utilizing production meters and other measuring equipment to track production from each formation accurately. 4. Reporting and accounting: The agreement establishes reporting requirements for each working owner, ensuring transparency and accountability in production reporting. It also includes provisions for revenue distribution and accounting procedures, such as regular audits and financial statements. 5. Liability and indemnity: The agreement addresses potential liabilities and indemnification among the working owners, ensuring that each party assumes responsibility for its actions and any resulting damages or legal claims. Different types of Kansas Commingling Agreement Among Working Owners may exist based on the specific formations involved and the parties involved. Examples could include agreements for the commingling of production from formations like the Mississippian Limestone, the Lansing-Kansas City Formation, or the Ar buckle Formation, among others. In conclusion, a Kansas 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 legally binding instrument that governs the simultaneous production of oil and gas from multiple formations in Kansas oilfields. It ensures fair allocation of production and revenue among working owners, while promoting efficient and coordinated extraction operations.
