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.
Michigan Obligatory Well is a crucial term that is commonly used in the oil and gas industry in the state of Michigan. It refers to a specific type of well that is legally required to be drilled by the operator in order to meet certain regulatory obligations set forth by the Michigan Department of Environment, Great Lakes, and Energy (EAGLE) and other relevant agencies. These wells are designed to ensure the safe extraction and production of oil and gas resources while maintaining the protection of the environment and public health. There are several types of Michigan Obligatory Wells, each serving a unique purpose based on the specific geographical and geological conditions of the area. The primary types of Michigan Obligatory Wells include: 1. Production Wells: These are wells drilled to extract oil and gas reserves from underground formations. Operators are obligated to drill production wells to access and retrieve valuable hydrocarbon resources from the subsurface. 2. Injection Wells: These wells are essential in the oil and gas industry as they are used to disposing of produced water, carbon dioxide, or other fluids back into the well or underground formations. Injection wells help maintain the balance of reservoir pressure and prevent the release of harmful substances into the environment. 3. Observation Wells: These wells are drilled to monitor and assess the behavior of subsurface formations, reservoir fluids, and pressure. They allow operators to gather crucial data to ensure effective reservoir management and environmental protection. 4. Monitoring Wells: Monitoring wells are specifically designed to monitor the groundwater quality and quantity. These wells help in identifying and preventing any form of contamination caused by oil and gas activities, ensuring the safety of drinking water sources and adjacent ecosystems. 5. Plugging Wells: Once a well has reached the end of its productive life or is no longer economically viable, it must be properly plugged and abandoned. Plugging wells is crucial to prevent any potential hazardous leaks of oil, gas, or other fluids into surrounding groundwater and soil. Michigan Obligatory Wells play a vital role in the responsible exploration, production, and management of oil and gas resources in the state. By adhering to the regulatory requirements and drilling these wells, operators ensure the protection of human health, the environment, and the sustainability of Michigan's valuable natural resources.Michigan Obligatory Well is a crucial term that is commonly used in the oil and gas industry in the state of Michigan. It refers to a specific type of well that is legally required to be drilled by the operator in order to meet certain regulatory obligations set forth by the Michigan Department of Environment, Great Lakes, and Energy (EAGLE) and other relevant agencies. These wells are designed to ensure the safe extraction and production of oil and gas resources while maintaining the protection of the environment and public health. There are several types of Michigan Obligatory Wells, each serving a unique purpose based on the specific geographical and geological conditions of the area. The primary types of Michigan Obligatory Wells include: 1. Production Wells: These are wells drilled to extract oil and gas reserves from underground formations. Operators are obligated to drill production wells to access and retrieve valuable hydrocarbon resources from the subsurface. 2. Injection Wells: These wells are essential in the oil and gas industry as they are used to disposing of produced water, carbon dioxide, or other fluids back into the well or underground formations. Injection wells help maintain the balance of reservoir pressure and prevent the release of harmful substances into the environment. 3. Observation Wells: These wells are drilled to monitor and assess the behavior of subsurface formations, reservoir fluids, and pressure. They allow operators to gather crucial data to ensure effective reservoir management and environmental protection. 4. Monitoring Wells: Monitoring wells are specifically designed to monitor the groundwater quality and quantity. These wells help in identifying and preventing any form of contamination caused by oil and gas activities, ensuring the safety of drinking water sources and adjacent ecosystems. 5. Plugging Wells: Once a well has reached the end of its productive life or is no longer economically viable, it must be properly plugged and abandoned. Plugging wells is crucial to prevent any potential hazardous leaks of oil, gas, or other fluids into surrounding groundwater and soil. Michigan Obligatory Wells play a vital role in the responsible exploration, production, and management of oil and gas resources in the state. By adhering to the regulatory requirements and drilling these wells, operators ensure the protection of human health, the environment, and the sustainability of Michigan's valuable natural resources.
