Kentucky Waiver of Call on Production

• Category: Oil Gas and Minerals - Waivers
• State: Multi-State
• Control #: US-OG-566
• Format: Word; Rich Text

Description

This is a form of a Waiver of Call on Production. A Kentucky Waiver of Call on Production is a legal document that is often used in the oil and gas industry. It is a contractual agreement between the operator (the party responsible for drilling and extracting oil or gas) and the working interest owners (the parties who have a share in the production) in a particular well or oilfield. This waiver allows the operator to produce and sell the oil or gas without having to account for the exact amount produced to each working interest owner. This type of waiver grants the operator the freedom to operate without constant supervision or approval from the working interest owners for every production decision. It allows the operator to act in the best interest of the project's efficiency without unnecessary delays. Instead of accounting for every barrel of oil or cubic feet of gas produced, the operator makes regular payments to the working interest owners based on their respective ownership percentages or predetermined agreements. The Kentucky Waiver of Call on Production serves as an agreement between the operator and the working interest owners to streamline the production process and avoid administrative burden. While it may differ slightly from other states, the essential purpose of this waiver remains the same. There can be various types of waivers within the Kentucky Waiver of Call on Production, such as: 1. Partial Waiver: This type of waiver allows the operator to account for only a portion of the production, reducing the administrative burden for certain smaller interests. 2. Full Waiver: In this case, the operator does not need to provide any production details to the working interest owners. They rely solely on predetermined payments or ownership percentages. 3. Alternative Distribution Agreement: This waiver allows the operator and working interest owners to agree on an alternative method of distribution or payment calculation, taking into consideration factors such as well productivity, production costs, or time duration. In summary, a Kentucky Waiver of Call on Production is a vital legal document that enables oil and gas operators to produce and sell resources efficiently. It eliminates the need for constant production reporting and approval from working interest owners, enhancing project flexibility and aiding in administrative simplification.

A Kentucky Waiver of Call on Production is a legal document that is often used in the oil and gas industry. It is a contractual agreement between the operator (the party responsible for drilling and extracting oil or gas) and the working interest owners (the parties who have a share in the production) in a particular well or oilfield. This waiver allows the operator to produce and sell the oil or gas without having to account for the exact amount produced to each working interest owner. This type of waiver grants the operator the freedom to operate without constant supervision or approval from the working interest owners for every production decision. It allows the operator to act in the best interest of the project's efficiency without unnecessary delays. Instead of accounting for every barrel of oil or cubic feet of gas produced, the operator makes regular payments to the working interest owners based on their respective ownership percentages or predetermined agreements. The Kentucky Waiver of Call on Production serves as an agreement between the operator and the working interest owners to streamline the production process and avoid administrative burden. While it may differ slightly from other states, the essential purpose of this waiver remains the same. There can be various types of waivers within the Kentucky Waiver of Call on Production, such as: 1. Partial Waiver: This type of waiver allows the operator to account for only a portion of the production, reducing the administrative burden for certain smaller interests. 2. Full Waiver: In this case, the operator does not need to provide any production details to the working interest owners. They rely solely on predetermined payments or ownership percentages. 3. Alternative Distribution Agreement: This waiver allows the operator and working interest owners to agree on an alternative method of distribution or payment calculation, taking into consideration factors such as well productivity, production costs, or time duration. In summary, a Kentucky Waiver of Call on Production is a vital legal document that enables oil and gas operators to produce and sell resources efficiently. It eliminates the need for constant production reporting and approval from working interest owners, enhancing project flexibility and aiding in administrative simplification.