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.
A Kentucky Obligatory Well refers to a specific type of well drilling activity that is mandated by the state government in Kentucky, United States. This drilling process is often required to be conducted by operators in compliance with certain regulations and to ensure the effective and safe extraction of natural resources. Kentucky Obligatory Wells are primarily categorized into two types: oil wells and gas wells, each serving unique purposes and following distinctive drilling procedures. 1. Kentucky Obligatory Oil Wells: Kentucky is known for its rich oil reserves, and drilling oil wells is a crucial aspect of the state's energy industry. Obligatory oil wells are drilled to extract crude oil from underground reservoirs. These wells utilize advanced drilling techniques such as rotary drilling and hydraulic fracturing (fracking) to access and extract oil trapped in porous rock formations. Obligatory oil wells in Kentucky undergo rigorous oversight to ensure compliance with regulatory frameworks and are subject to routine inspections to ensure environmental protection. 2. Kentucky Obligatory Gas Wells: Natural gas is another valuable resource in Kentucky, and obligatory gas wells are designed to tap into natural gas reserves. These wells are drilled to access and extract the natural gas trapped within underground layers of shale or sandstone. Hydraulic fracturing is often employed in gas well drilling to break open the rock formations and allow for the extraction of natural gas. Similar to obligatory oil wells, obligatory gas wells are subject to strict regulations and monitoring to prevent any adverse environmental impacts and to ensure safe extraction methods. Overall, Kentucky Obligatory Wells play a vital role in the state's economy by facilitating the extraction of valuable resources. They are subject to comprehensive regulatory oversight to safeguard the environment, protect public health, and ensure the responsible development of energy resources. Operators involved in drilling these wells must adhere to best practices and comply with applicable laws and regulations to maintain a balance between resource extraction and environmental preservation.A Kentucky Obligatory Well refers to a specific type of well drilling activity that is mandated by the state government in Kentucky, United States. This drilling process is often required to be conducted by operators in compliance with certain regulations and to ensure the effective and safe extraction of natural resources. Kentucky Obligatory Wells are primarily categorized into two types: oil wells and gas wells, each serving unique purposes and following distinctive drilling procedures. 1. Kentucky Obligatory Oil Wells: Kentucky is known for its rich oil reserves, and drilling oil wells is a crucial aspect of the state's energy industry. Obligatory oil wells are drilled to extract crude oil from underground reservoirs. These wells utilize advanced drilling techniques such as rotary drilling and hydraulic fracturing (fracking) to access and extract oil trapped in porous rock formations. Obligatory oil wells in Kentucky undergo rigorous oversight to ensure compliance with regulatory frameworks and are subject to routine inspections to ensure environmental protection. 2. Kentucky Obligatory Gas Wells: Natural gas is another valuable resource in Kentucky, and obligatory gas wells are designed to tap into natural gas reserves. These wells are drilled to access and extract the natural gas trapped within underground layers of shale or sandstone. Hydraulic fracturing is often employed in gas well drilling to break open the rock formations and allow for the extraction of natural gas. Similar to obligatory oil wells, obligatory gas wells are subject to strict regulations and monitoring to prevent any adverse environmental impacts and to ensure safe extraction methods. Overall, Kentucky Obligatory Wells play a vital role in the state's economy by facilitating the extraction of valuable resources. They are subject to comprehensive regulatory oversight to safeguard the environment, protect public health, and ensure the responsible development of energy resources. Operators involved in drilling these wells must adhere to best practices and comply with applicable laws and regulations to maintain a balance between resource extraction and environmental preservation.
