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.
New Jersey Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore is a legal agreement that is commonly utilized in the oil and gas industry. This agreement is particularly relevant in cases where the leasehold ownership of a well bore varies as to depth, resulting in the coexistence of multiple working owners within the same well. The purpose of the New Jersey Commingling Agreement is to establish a framework for the efficient and coordinated extraction of resources from different formations within the same well bore. This agreement allows working owners to collaborate and pool their resources, expertise, and equipment to optimize production, reduce costs, and maximize overall well performance. Keywords: New Jersey, Commingling Agreement, Working Owners, Production, Different Formations, Same Well Bore, Leasehold Ownership, Depth Types of New Jersey Commingling Agreements: 1. Conventional Commingle Agreement: This type of agreement is typically used when working owners extract resources from multiple formations within the same well bore, where leasehold ownership varies as to depth. It ensures efficient resource recovery and provides a legal framework for revenue distribution among the working owners. 2. Unconventional Commingle Agreement: This agreement is specifically designed for situations where unconventional formations, such as shale gas or tight oil, are being extracted from the same well bore. It addresses the unique challenges and considerations associated with unconventional resource production. 3. Vertical and Horizontal Commingle Agreement: When a well bore traverses both vertical and horizontal formations, a vertical and horizontal commingle agreement is often employed. This agreement allows for the pooling of resources from different orientations, ensuring the optimal extraction of resources from both. 4. Commingle Agreement with Depth-Based Revenue Share: In cases where the leasehold ownership varies not only as to depth but also as to the productive formations, a commingled agreement with depth-based revenue share becomes relevant. This agreement ensures that each working owner receives a fair share of the revenues based on their respective ownership rights and the depths from which production is derived. 5. Commingle Agreement with Carry Agreement Provision: This type of commingle agreement includes provisions for a carry agreement, wherein a working owner with a lesser ownership interest may agree to contribute less financially to the commingling operations. This provision helps balance the interests and financial burdens among the working owners while ensuring equitable revenue distribution based on ownership percentages. In summary, the New Jersey 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 document that facilitates efficient resource recovery and collaboration among working owners in the oil and gas industry.New Jersey Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore is a legal agreement that is commonly utilized in the oil and gas industry. This agreement is particularly relevant in cases where the leasehold ownership of a well bore varies as to depth, resulting in the coexistence of multiple working owners within the same well. The purpose of the New Jersey Commingling Agreement is to establish a framework for the efficient and coordinated extraction of resources from different formations within the same well bore. This agreement allows working owners to collaborate and pool their resources, expertise, and equipment to optimize production, reduce costs, and maximize overall well performance. Keywords: New Jersey, Commingling Agreement, Working Owners, Production, Different Formations, Same Well Bore, Leasehold Ownership, Depth Types of New Jersey Commingling Agreements: 1. Conventional Commingle Agreement: This type of agreement is typically used when working owners extract resources from multiple formations within the same well bore, where leasehold ownership varies as to depth. It ensures efficient resource recovery and provides a legal framework for revenue distribution among the working owners. 2. Unconventional Commingle Agreement: This agreement is specifically designed for situations where unconventional formations, such as shale gas or tight oil, are being extracted from the same well bore. It addresses the unique challenges and considerations associated with unconventional resource production. 3. Vertical and Horizontal Commingle Agreement: When a well bore traverses both vertical and horizontal formations, a vertical and horizontal commingle agreement is often employed. This agreement allows for the pooling of resources from different orientations, ensuring the optimal extraction of resources from both. 4. Commingle Agreement with Depth-Based Revenue Share: In cases where the leasehold ownership varies not only as to depth but also as to the productive formations, a commingled agreement with depth-based revenue share becomes relevant. This agreement ensures that each working owner receives a fair share of the revenues based on their respective ownership rights and the depths from which production is derived. 5. Commingle Agreement with Carry Agreement Provision: This type of commingle agreement includes provisions for a carry agreement, wherein a working owner with a lesser ownership interest may agree to contribute less financially to the commingling operations. This provision helps balance the interests and financial burdens among the working owners while ensuring equitable revenue distribution based on ownership percentages. In summary, the New Jersey 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 document that facilitates efficient resource recovery and collaboration among working owners in the oil and gas industry.
