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.
Nebraska Relinquishment Provision — Horizontal Well: Understanding the Regulations and Types The Nebraska Relinquishment Provision — Horizontal Well is a vital aspect of oil and gas drilling in the state of Nebraska. This provision determines the conditions under which an operator must relinquish or release certain acreage within a drilling unit once a horizontal well has been drilled and produced. Let's delve into the details of this provision, exploring its purpose, key regulations, and different types: Purpose of the Nebraska Relinquishment Provision — Horizontal Well: The main goal of the Nebraska Relinquishment Provision is to promote fair and efficient land use within drilling units while ensuring responsible resource development. It prevents operators from holding large acreages indefinitely, encouraging competition and facilitating the development of additional wells. Key Regulations Governing the Nebraska Relinquishment Provision — Horizontal Well: 1. Acreage Release Timing: The provision mandates acreage relinquishment within specific timeframes after the completion of a horizontal well. This timeframe may vary based on the classification of the well, as defined by the Nebraska Oil and Gas Conservation Commission (NO GCC). 2. Setback Requirements: Horizontal well operators must comply with setback requirements defined by the NO GCC. These regulations aim to protect the rights of neighboring landowners and regulate well spacing to maintain environmental and safety standards. 3. Drilling and Production Expectations: The relinquishment provision considers the drilling and production expectations of operators. It sets guidelines to avoid premature relinquishment or excessive retention of acreage, ensuring efficient resource extraction and development. Types of Nebraska Relinquishment Provision — Horizontal Well: 1. Drilling and Completion Relinquishment: This type applies when an operator has drilled and completed a horizontal well but has not yet achieved commercial production. In such cases, operators are required to relinquish a portion of the acreage within a specified timeframe. 2. Production-based Relinquishment: Once commercial production is achieved from a horizontal well, operators are obliged to relinquish additional acreage in a phased manner. The specific requirements may depend on the cumulative production achieved or time elapsed from initial production. The aim is to foster competition and prevent operators from excessively holding acreage without active development. 3. Secondary Relinquishment Provisions: Nebraska's relinquishment provision might include auxiliary clauses, such as continuous drilling obligations and secondary relinquishment. These provisions aim to encourage ongoing development and release additional acreage after specific time intervals or upon failing to meet certain drilling and production benchmarks. Complying with the Nebraska Relinquishment Provision — Horizontal Well is crucial for operators to maintain their operational licenses and actively contribute to responsible resource development. By balancing the interests of operators, landowners, and environmental concerns, this provision ensures equitable usage of land and fosters a sustainable energy sector in Nebraska.Nebraska Relinquishment Provision — Horizontal Well: Understanding the Regulations and Types The Nebraska Relinquishment Provision — Horizontal Well is a vital aspect of oil and gas drilling in the state of Nebraska. This provision determines the conditions under which an operator must relinquish or release certain acreage within a drilling unit once a horizontal well has been drilled and produced. Let's delve into the details of this provision, exploring its purpose, key regulations, and different types: Purpose of the Nebraska Relinquishment Provision — Horizontal Well: The main goal of the Nebraska Relinquishment Provision is to promote fair and efficient land use within drilling units while ensuring responsible resource development. It prevents operators from holding large acreages indefinitely, encouraging competition and facilitating the development of additional wells. Key Regulations Governing the Nebraska Relinquishment Provision — Horizontal Well: 1. Acreage Release Timing: The provision mandates acreage relinquishment within specific timeframes after the completion of a horizontal well. This timeframe may vary based on the classification of the well, as defined by the Nebraska Oil and Gas Conservation Commission (NO GCC). 2. Setback Requirements: Horizontal well operators must comply with setback requirements defined by the NO GCC. These regulations aim to protect the rights of neighboring landowners and regulate well spacing to maintain environmental and safety standards. 3. Drilling and Production Expectations: The relinquishment provision considers the drilling and production expectations of operators. It sets guidelines to avoid premature relinquishment or excessive retention of acreage, ensuring efficient resource extraction and development. Types of Nebraska Relinquishment Provision — Horizontal Well: 1. Drilling and Completion Relinquishment: This type applies when an operator has drilled and completed a horizontal well but has not yet achieved commercial production. In such cases, operators are required to relinquish a portion of the acreage within a specified timeframe. 2. Production-based Relinquishment: Once commercial production is achieved from a horizontal well, operators are obliged to relinquish additional acreage in a phased manner. The specific requirements may depend on the cumulative production achieved or time elapsed from initial production. The aim is to foster competition and prevent operators from excessively holding acreage without active development. 3. Secondary Relinquishment Provisions: Nebraska's relinquishment provision might include auxiliary clauses, such as continuous drilling obligations and secondary relinquishment. These provisions aim to encourage ongoing development and release additional acreage after specific time intervals or upon failing to meet certain drilling and production benchmarks. Complying with the Nebraska Relinquishment Provision — Horizontal Well is crucial for operators to maintain their operational licenses and actively contribute to responsible resource development. By balancing the interests of operators, landowners, and environmental concerns, this provision ensures equitable usage of land and fosters a sustainable energy sector in Nebraska.
