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.
The North Dakota Relinquishment Provision — Horizontal Well is a legal regulation pertaining to oil and gas exploration and production in the state of North Dakota. This provision establishes guidelines and requirements for the relinquishment of acreage associated with horizontal well drilling activities. Keywords: North Dakota, relinquishment provision, horizontal well, oil and gas, exploration, production, acreage, drilling activities. The North Dakota Relinquishment Provision — Horizontal Well encompasseseveralnt types, namely: 1. Standard Relinquishment: This type stipulates that operators must relinquish a specified percentage of their acreage after a certain period of time. For example, operators may be required to relinquish 40% of the total leased acreage after five years of horizontal well production. 2. Incremental Relinquishment: Under this provision, operators must relinquish acreage in a phased manner. For instance, they may need to relinquish 20% of their leased acreage every two years until a certain percentage is reached. This ensures continuous development while providing an opportunity for new operators to enter the field. 3. Economic-Based Relinquishment: This mechanism dictates that operators must relinquish acreage based on the economic viability of the wells drilled on a given lease. If a horizontal well fails to meet certain production or profitability criteria, operators may be required to relinquish the associated acreage to allow for more productive operations. 4. Spacing-Based Relinquishment: This provision focuses on maintaining optimal well spacing in a given area. Operators must relinquish acreage to ensure sufficient spacing between horizontal wells, thereby avoiding interference and maximizing resource recovery. It is important for operators to understand and comply with the North Dakota Relinquishment Provision — Horizontal Well to ensure proper management of oil and gas resources. Failure to comply with these regulations may result in penalties, fines, or the loss of drilling privileges.The North Dakota Relinquishment Provision — Horizontal Well is a legal regulation pertaining to oil and gas exploration and production in the state of North Dakota. This provision establishes guidelines and requirements for the relinquishment of acreage associated with horizontal well drilling activities. Keywords: North Dakota, relinquishment provision, horizontal well, oil and gas, exploration, production, acreage, drilling activities. The North Dakota Relinquishment Provision — Horizontal Well encompasseseveralnt types, namely: 1. Standard Relinquishment: This type stipulates that operators must relinquish a specified percentage of their acreage after a certain period of time. For example, operators may be required to relinquish 40% of the total leased acreage after five years of horizontal well production. 2. Incremental Relinquishment: Under this provision, operators must relinquish acreage in a phased manner. For instance, they may need to relinquish 20% of their leased acreage every two years until a certain percentage is reached. This ensures continuous development while providing an opportunity for new operators to enter the field. 3. Economic-Based Relinquishment: This mechanism dictates that operators must relinquish acreage based on the economic viability of the wells drilled on a given lease. If a horizontal well fails to meet certain production or profitability criteria, operators may be required to relinquish the associated acreage to allow for more productive operations. 4. Spacing-Based Relinquishment: This provision focuses on maintaining optimal well spacing in a given area. Operators must relinquish acreage to ensure sufficient spacing between horizontal wells, thereby avoiding interference and maximizing resource recovery. It is important for operators to understand and comply with the North Dakota Relinquishment Provision — Horizontal Well to ensure proper management of oil and gas resources. Failure to comply with these regulations may result in penalties, fines, or the loss of drilling privileges.
