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 North Carolina 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 arrangement made between the various co-owners of a well in North Carolina. This agreement specifically addresses the situation where different formations are being produced from the same well bore, and the ownership of the leasehold interests varies in terms of depth. In such cases, where multiple formations (e.g., shale, sandstone, limestone, or other geological formations) are being exploited from the same well bore, it becomes crucial for the working owners to establish clear guidelines and regulations to govern the commingling of production from these different formations. This agreement ensures that all co-owners consent to the commingling and establishes the procedures for allocating the production and associated interests. The North Carolina Commingling Agreement aims to provide a fair and efficient system for sharing production revenues and costs among the working owners. It sets forth the methodology for determining the allocation percentages for each formation based on factors such as the respective ownership interests, production data, and reservoir engineering reports. The agreement may also define the responsibilities and liabilities of the working owners in terms of drilling, operations, maintenance, and plugging and abandonment of the well. It could include provisions for joint reporting, auditing, and dispute resolution mechanisms to ensure transparency and smooth coordination among the co-owners. Different variations of the North Carolina Commingling Agreement can arise depending on the specific conditions of well ownership. For example, there may be agreements that address commingling from formations at different depths or formations owned by different parties. These agreements might contain additional provisions specific to the particular circumstances they govern. In summary, a North Carolina 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 facilitates the joint exploitation of multiple formations from a single well bore. It establishes rules, procedures, and allocation methods to ensure a fair and efficient distribution of production revenues and costs among the co-owners.A North Carolina 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 arrangement made between the various co-owners of a well in North Carolina. This agreement specifically addresses the situation where different formations are being produced from the same well bore, and the ownership of the leasehold interests varies in terms of depth. In such cases, where multiple formations (e.g., shale, sandstone, limestone, or other geological formations) are being exploited from the same well bore, it becomes crucial for the working owners to establish clear guidelines and regulations to govern the commingling of production from these different formations. This agreement ensures that all co-owners consent to the commingling and establishes the procedures for allocating the production and associated interests. The North Carolina Commingling Agreement aims to provide a fair and efficient system for sharing production revenues and costs among the working owners. It sets forth the methodology for determining the allocation percentages for each formation based on factors such as the respective ownership interests, production data, and reservoir engineering reports. The agreement may also define the responsibilities and liabilities of the working owners in terms of drilling, operations, maintenance, and plugging and abandonment of the well. It could include provisions for joint reporting, auditing, and dispute resolution mechanisms to ensure transparency and smooth coordination among the co-owners. Different variations of the North Carolina Commingling Agreement can arise depending on the specific conditions of well ownership. For example, there may be agreements that address commingling from formations at different depths or formations owned by different parties. These agreements might contain additional provisions specific to the particular circumstances they govern. In summary, a North Carolina 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 facilitates the joint exploitation of multiple formations from a single well bore. It establishes rules, procedures, and allocation methods to ensure a fair and efficient distribution of production revenues and costs among the co-owners.
