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 New Mexico 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 document that establishes guidelines and provisions for the joint production and sharing of resources from different formations within a single well bore. This agreement is particularly applicable in situations where multiple leaseholders have varying ownership rights based on the depth of the formations involved. The purpose of this agreement is to ensure equitable distribution of resources and to eliminate conflicts that may arise due to varying leasehold interests. It provides a framework for collaborative decision-making, revenue sharing, and operational responsibilities among the working owners. Under this agreement, working owners agree to commingle production from different formations, meaning that the resources extracted from various depths within the same well bore will be combined before distribution. Commingling helps to maximize production efficiency and reduce operational costs. Key provisions covered in a New Mexico Commingling Agreement Among Working Owners include: 1. Scope and Purpose: Clearly defined objectives, including the identification of formations and depths involved in commingling production, and the intention to maximize resource recovery and minimize waste. 2. Ownership and Interests: Detailed explanation of each working owner's leasehold ownership rights, specifying the depths and formations they have rights to. 3. Operations and Management: Outlines the responsibilities of each working owner, including drilling, completion, operation, and maintenance of the well bore. It may also include provisions for appointing a designated operator to handle day-to-day operations. 4. Commingling Arrangement: Specific guidelines and procedures for commingling production from different formations, ensuring accurate measurement, allocation, and reporting of resources. This section may also cover provisions for down hole separation equipment or technologies if required. 5. Product Allocation and Revenue Sharing: Establishes a mechanism for allocating production and revenues among the working owners, based on their respective leasehold interests and the volume of resources extracted. 6. Dispute Resolution: Provides a framework for resolving conflicts or disagreements that may arise during the course of the agreement and ensures that the interests of all working owners are protected. The New Mexico Commingling Agreement Among Working Owners may have different variations, depending on the specific geological formations involved, the number of working owners, the depth variations of leasehold ownership, and other unique circumstances. These variations may include agreements specific to different oil and gas basins within New Mexico, such as the Permian Basin, San Juan Basin, or Eaton Basin, among others. Each variation will address the unique characteristics and requirements of the particular basin or area.A New Mexico 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 document that establishes guidelines and provisions for the joint production and sharing of resources from different formations within a single well bore. This agreement is particularly applicable in situations where multiple leaseholders have varying ownership rights based on the depth of the formations involved. The purpose of this agreement is to ensure equitable distribution of resources and to eliminate conflicts that may arise due to varying leasehold interests. It provides a framework for collaborative decision-making, revenue sharing, and operational responsibilities among the working owners. Under this agreement, working owners agree to commingle production from different formations, meaning that the resources extracted from various depths within the same well bore will be combined before distribution. Commingling helps to maximize production efficiency and reduce operational costs. Key provisions covered in a New Mexico Commingling Agreement Among Working Owners include: 1. Scope and Purpose: Clearly defined objectives, including the identification of formations and depths involved in commingling production, and the intention to maximize resource recovery and minimize waste. 2. Ownership and Interests: Detailed explanation of each working owner's leasehold ownership rights, specifying the depths and formations they have rights to. 3. Operations and Management: Outlines the responsibilities of each working owner, including drilling, completion, operation, and maintenance of the well bore. It may also include provisions for appointing a designated operator to handle day-to-day operations. 4. Commingling Arrangement: Specific guidelines and procedures for commingling production from different formations, ensuring accurate measurement, allocation, and reporting of resources. This section may also cover provisions for down hole separation equipment or technologies if required. 5. Product Allocation and Revenue Sharing: Establishes a mechanism for allocating production and revenues among the working owners, based on their respective leasehold interests and the volume of resources extracted. 6. Dispute Resolution: Provides a framework for resolving conflicts or disagreements that may arise during the course of the agreement and ensures that the interests of all working owners are protected. The New Mexico Commingling Agreement Among Working Owners may have different variations, depending on the specific geological formations involved, the number of working owners, the depth variations of leasehold ownership, and other unique circumstances. These variations may include agreements specific to different oil and gas basins within New Mexico, such as the Permian Basin, San Juan Basin, or Eaton Basin, among others. Each variation will address the unique characteristics and requirements of the particular basin or area.
