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 New Mexico Relinquishment Provision — Horizontal Well refers to a regulatory policy implemented in the state of New Mexico that governs the abandonment or relinquishment process of horizontal wells. This provision outlines the requirements and procedures for operators of horizontal wells to properly relinquish their rights and responsibilities over their wells. Keywords: New Mexico, Relinquishment Provision, Horizontal Well, abandonment, operators, regulatory policy Within this provision, there are several types of New Mexico Relinquishment Provision — Horizontal Wells: 1. Conventional Relinquishment: This type refers to the standard relinquishment process for horizontal wells that have reached the end of their productive life or no longer meet economic viability. Operators need to follow specific procedures to ensure the safe and environmentally sound abandonment of their wells. 2. Premature Relinquishment: This category pertains to when operators choose to relinquish their rights over horizontal wells before their anticipated lifespan or beyond economic feasibility. Premature relinquishment can occur due to various reasons such as changes in the market or operational strategies. The provision guides operators through the processes involved in early abandonment. 3. Regulatory-Driven Relinquishment: This type of relinquishment occurs when operators are compelled to abandon their horizontal wells based on regulatory requirements. For example, if the well poses a significant risk to the environment or public safety, regulatory bodies may mandate its abandonment. The New Mexico Relinquishment Provision — Horizontal Well provides guidelines to ensure compliance in such cases. 4. Temporary/Seasonal Relinquishment: This category encompasses the relinquishment of horizontal wells for short durations, such as during non-productive seasons or for maintenance purposes. Operators must follow specific protocols to temporarily shut down and relinquish their wells, allowing for efficient and safe reactivation when needed. 5. Partial Relinquishment: This type involves the partial abandonment of a horizontal well, either due to specific economic conditions or reserved interests. Operators may relinquish a portion of their rights or responsibility over the well, while maintaining operation and control over the remaining sections. The New Mexico Relinquishment Provision — Horizontal Well provides guidelines for operators to correctly execute partial relinquishment. Overall, the New Mexico Relinquishment Provision — Horizontal Well ensures that operators comply with regulations for the abandonment and relinquishment of horizontal wells, safeguarding environmental and public safety concerns while promoting efficient management of resources.
