This form is used when any party electing not to participate in an exploratory well after the exploratory well has been drilled, relinquish and assign to the Drilling Party or Parties one hundred percent (100%) of its rights, title and interests in the Drilling Unit and the eight (8) Drilling Units directly and diagonally offsetting the Drilling Unit on which the well was drilled.
The North Dakota Relinquishment Provision — Exploratory Well is a crucial term in the oil and gas industry, specifically pertaining to the exploration and drilling activities in the state of North Dakota. This provision outlines the requirements and regulations related to the relinquishment of leases on exploratory wells in North Dakota, ensuring proper management of resources and encouraging efficient exploration efforts. The North Dakota Relinquishment Provision — Exploratory Well primarily focuses on the timeframe and conditions under which an operator must either commence production or relinquish the leased area. This provision ensures that operators adhere to strict timelines, preventing speculative leasing practices that may hinder efficient development and production of oil and gas resources. There are two main types of North Dakota Relinquishment Provision — Exploratory Well: 1. Time-Based Relinquishment Provision: Under this provision, operators are required to either commence production within a specific timeframe or relinquish the leased area to allow other interested parties to explore and develop the resources. The specific duration for commencement of production may vary depending on the location and type of well. 2. Production-Based Relinquishment Provision: In this type of provision, operators must demonstrate a certain level of production from the exploratory well within a predefined timeframe. This provision ensures that operators actively pursue successful exploration and production efforts, avoiding the retention of non-producing wells for extended durations. The North Dakota Relinquishment Provision — Exploratory Well is integral for promoting fair competition, preventing land hoarding, and maximizing the utilization of oil and gas resources in the state. It encourages efficient exploration, discourages speculation, and ensures that operators responsible for leasing rights actively pursue production efforts. Keywords: North Dakota, relinquishment provision, exploratory well, oil and gas industry, exploration, drilling activities, leases, regulations, resources, management, efficient, timeframe, commence production, relinquish, development, productive wells, competition, land hoarding, utilization.
