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 Michigan 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 contract that outlines the provisions and regulations governing the joint production of oil or gas from multiple formations within a single well bore. This agreement is necessary when the ownership or leasehold rights to different depths or formations vary among the working owners. Keywords: Michigan, Commingling Agreement, Working Owners, Production, Different Formations, Same Well Bore, Leasehold Ownership, Depth. Types of Michigan Commingling Agreements Among Working Owners: 1. Depth-Based Commingling Agreement: This type of agreement is executed when the leasehold ownership varies based on the depth of the well. It defines the rights and responsibilities of working owners regarding the production and distribution of resources from different formations based on the specified depth boundaries. 2. Formation-Based Commingling Agreement: In this variant, the agreement focuses on the distinct formations present within the well bore. It establishes guidelines on how the working owners will jointly produce and share production from each formation, considering the varying leasehold ownership rights associated with specific formations. 3. Proportional Commingling Agreement: A proportional commingling agreement is used when the owners agree to produce and distribute oil or gas on a proportional basis, taking into account the ownership percentages of each working owner. This ensures a fair distribution of resources based on the respective ownership interests in different formations or depths. 4. Responsibility and Cost-Sharing Commingling Agreement: This type of agreement is designed to clarify the responsibilities and cost-sharing arrangements among working owners for the production, operation, and maintenance of the well, along with any associated equipment and facilities. It specifies the financial obligations and contributions required from each working owner, considering their leasehold ownership variations. 5. Environmental and Regulatory Compliance Commingling Agreement: This agreement addresses the environmental and regulatory aspects of oil and gas production from multiple formations within the same well bore. It outlines the mutual responsibilities of the working owners in complying with applicable laws, regulations, and environmental standards during the production process. Michigan 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 crucial legal instrument that ensures fair collaboration, efficient production, and proper resource distribution in oil and gas operations.A Michigan 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 contract that outlines the provisions and regulations governing the joint production of oil or gas from multiple formations within a single well bore. This agreement is necessary when the ownership or leasehold rights to different depths or formations vary among the working owners. Keywords: Michigan, Commingling Agreement, Working Owners, Production, Different Formations, Same Well Bore, Leasehold Ownership, Depth. Types of Michigan Commingling Agreements Among Working Owners: 1. Depth-Based Commingling Agreement: This type of agreement is executed when the leasehold ownership varies based on the depth of the well. It defines the rights and responsibilities of working owners regarding the production and distribution of resources from different formations based on the specified depth boundaries. 2. Formation-Based Commingling Agreement: In this variant, the agreement focuses on the distinct formations present within the well bore. It establishes guidelines on how the working owners will jointly produce and share production from each formation, considering the varying leasehold ownership rights associated with specific formations. 3. Proportional Commingling Agreement: A proportional commingling agreement is used when the owners agree to produce and distribute oil or gas on a proportional basis, taking into account the ownership percentages of each working owner. This ensures a fair distribution of resources based on the respective ownership interests in different formations or depths. 4. Responsibility and Cost-Sharing Commingling Agreement: This type of agreement is designed to clarify the responsibilities and cost-sharing arrangements among working owners for the production, operation, and maintenance of the well, along with any associated equipment and facilities. It specifies the financial obligations and contributions required from each working owner, considering their leasehold ownership variations. 5. Environmental and Regulatory Compliance Commingling Agreement: This agreement addresses the environmental and regulatory aspects of oil and gas production from multiple formations within the same well bore. It outlines the mutual responsibilities of the working owners in complying with applicable laws, regulations, and environmental standards during the production process. Michigan 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 crucial legal instrument that ensures fair collaboration, efficient production, and proper resource distribution in oil and gas operations.
