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 Louisiana 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 legal agreement used in the oil and gas industry in Louisiana. This agreement allows multiple working interest owners to together produce hydrocarbons from different formations within the same well bore, where the leasehold ownership varies with respect to depth. In this type of agreement, the working interest owners, who have ownership rights to the production from specific depths of a well, come together to effectively and efficiently exploit the potential of multiple formations. By sharing the costs and risks associated with drilling and extraction operations, these owners can maximize the production from the well and their respective leasehold interests. Some relevant keywords associated with this kind of agreement include: 1. Commingling: Refers to the process of combining production from different formations or sources into a single stream for efficient production and measurement. 2. Working Owners: Individuals or companies who hold working interests, which grant them the right to explore, develop, and produce oil and gas resources from a specific leasehold area. 3. Production: The extraction of oil and gas from the well, including all related activities such as drilling, completion, and ongoing operations. 4. Formations: Geological layers or zones within the subsurface that contain oil and gas reserves. Different formations may have distinct characteristics, production potentials, and ownership rights. 5. Well Bore: The drilled hole that extends from the surface into the subsurface, allowing access to the hydrocarbon-bearing formations. 6. Leasehold Ownership: The rights granted to an individual or entity by the property owner to explore, develop, and produce oil and gas resources within a specific leasehold area. The specific types of Louisiana Commingling Agreements Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth can vary depending on factors such as the number of working interest owners involved, the specific formations being targeted, and the depth variations within the leasehold area. These agreements may include provisions for cost sharing, production allocation, well maintenance, and dispute resolution mechanisms. It is important to consult with legal professionals and industry experts familiar with Louisiana oil and gas laws to draft a comprehensive and tailored commingling agreement that addresses the specific requirements and circumstances of the working interest owners involved.
