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.
Louisiana Obligatory Well refers to a legal requirement set by the Louisiana Department of Natural Resources (DNR) for oil and gas operators to drill specific wells to meet state regulations. These wells are crucial for tapping into Louisiana's vast oil and gas reserves and play a significant role in the state's energy sector. Types of Louisiana Obligatory Wells: 1. Louisiana Production Well: This type of obligatory well is drilled to extract oil or gas from underground reservoirs. Producers follow DNR guidelines and specifications regarding well design, construction, and production techniques to ensure safe and efficient operations. 2. Louisiana Injection Well: These wells are drilled specifically for injecting fluids or gases into underground formations. Injection wells help enhance oil recovery by maintaining reservoir pressure, disposing of waste fluids or protecting freshwater resources by safely injecting waste fluids deep underground. 3. Louisiana Disposal Well: Disposal wells are designed to safely inject non-hazardous waste fluids into deep underground formations, ensuring proper waste management practices for the oil and gas industry. These wells comply with rigorous DNR regulations to prevent any adverse effects on groundwater or surface water quality. 4. Louisiana Re-Entry Well: Re-entry wells involve the drilling of new passages into existing wells that have been depleted or require further exploration. Operators use advanced drilling techniques to re-access previously productive formations or install additional equipment for improved production or monitoring purposes. 5. Louisiana Abandonment Well: Abandonment wells are drilled to permanently seal and isolate exhausted or non-productive wells. Proper well abandonment is essential to prevent potential leaks, protect groundwater resources, and ensure environmental safety. DNR regulations require specific procedures for plugging and sealing these wells to minimize any risks. Louisiana Obligatory Wells contribute significantly to the state's energy sector and economy, providing job opportunities and supporting local businesses. Compliance with DNR regulations ensures the responsible and sustainable development of oil and gas resources, promoting environmental stewardship and safety in Louisiana's energy industry.Louisiana Obligatory Well refers to a legal requirement set by the Louisiana Department of Natural Resources (DNR) for oil and gas operators to drill specific wells to meet state regulations. These wells are crucial for tapping into Louisiana's vast oil and gas reserves and play a significant role in the state's energy sector. Types of Louisiana Obligatory Wells: 1. Louisiana Production Well: This type of obligatory well is drilled to extract oil or gas from underground reservoirs. Producers follow DNR guidelines and specifications regarding well design, construction, and production techniques to ensure safe and efficient operations. 2. Louisiana Injection Well: These wells are drilled specifically for injecting fluids or gases into underground formations. Injection wells help enhance oil recovery by maintaining reservoir pressure, disposing of waste fluids or protecting freshwater resources by safely injecting waste fluids deep underground. 3. Louisiana Disposal Well: Disposal wells are designed to safely inject non-hazardous waste fluids into deep underground formations, ensuring proper waste management practices for the oil and gas industry. These wells comply with rigorous DNR regulations to prevent any adverse effects on groundwater or surface water quality. 4. Louisiana Re-Entry Well: Re-entry wells involve the drilling of new passages into existing wells that have been depleted or require further exploration. Operators use advanced drilling techniques to re-access previously productive formations or install additional equipment for improved production or monitoring purposes. 5. Louisiana Abandonment Well: Abandonment wells are drilled to permanently seal and isolate exhausted or non-productive wells. Proper well abandonment is essential to prevent potential leaks, protect groundwater resources, and ensure environmental safety. DNR regulations require specific procedures for plugging and sealing these wells to minimize any risks. Louisiana Obligatory Wells contribute significantly to the state's energy sector and economy, providing job opportunities and supporting local businesses. Compliance with DNR regulations ensures the responsible and sustainable development of oil and gas resources, promoting environmental stewardship and safety in Louisiana's energy industry.
