This form is used in the event any part to this Agreement elects not to participate in a Horizontal Exploratory Well, the non-participating party shall, on commencement of operations for the well, relinquish to the participating party one hundred percent (100%) of its rights, title, and interests in and to that portion of the Contract Area included within the Drilling Unit for the well and one hundred percent (100%) of the party’s rights, title, and interests in and to that portion of the Contract Area.
Maine Relinquishment Provision — Horizontal Well refers to a specific regulation implemented in Maine that governs the relinquishing of oil and gas rights in areas where horizontal well drilling techniques are employed. This provision ensures the orderly development of oil and gas resources, while also protecting the environment and landowner rights. In Maine, the Relinquishment Provision for Horizontal Wells applies to both natural gas and oil extraction activities. It enables the responsible extraction of these resources from underground formations, primarily using horizontally drilled wells. This technique involves drilling vertically and then making a turn to follow the formation horizontally, allowing for increased production and reduced surface disturbance. There are different types of Relinquishment Provisions based on the specific conditions and requirements of each horizontal well. Some of these variations include: 1. Minimum Acreage Requirement: This provision defines the minimum acreage a landowner must possess to qualify for the relinquishment of oil and gas rights in a horizontal well project. It ensures that development occurs on a large enough scale to be economically viable. 2. Royalty Rates and Payments: This type of provision establishes the specified royalty rates and payment terms that must be adhered to by operators and landowners. It ensures that landowners are fairly compensated for the extraction of natural resources from their properties. 3. Lease Duration: This type of relinquishment provision specifies the duration of the lease agreement between the operator and the landowner. It may outline the length of time the operator has to exploit the oil and gas resources and when the well site must be reclaimed. 4. Surface Use Agreements: This provision outlines the terms and conditions for the operator's use of the land surface during drilling and production activities. It addresses matters such as access, surface restoration, and compensation for damages caused. 5. Environmental Protection: This type of relinquishment provision focuses on ensuring the protection of natural resources and the environment during drilling and production operations. It may require the operator to implement measures to minimize the impact on water resources, air quality, and wildlife habitats. In summary, the Maine Relinquishment Provision — Horizontal Well encompasses regulations that define the terms and conditions for oil and gas extraction using horizontal well drilling techniques. These provisions ensure responsible development, protection of landowner rights, fair compensation, environmental safeguards, and overall sustainable management of Maine's oil and gas resources.
