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 Nevada 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 contract that governs the joint production of oil, gas, or other minerals from different formations within the same well bore in Nevada. This agreement is specifically designed to address the situation where leasehold ownership varies as to depth, meaning that different parties may own the rights to different portions of the well at different depths. The primary purpose of such an agreement is to establish a mechanism for the equitable sharing of production among the working owners, ensuring that each party benefits proportionally according to their respective leasehold interests in the different formations and depths. The Nevada Commingling Agreement can include various clauses and provisions to regulate the production activities, including: 1. Definition of terms: This section of the agreement provides definitions for key terms used throughout the document, such as working interest, leasehold ownership, formations, well bore, depth, and commingling. 2. Grant of rights: This section outlines the granted rights and responsibilities of the working owners concerning the production operations. It typically includes provisions for allowing commingling among different formations within the same well bore. 3. Sharing of production: This clause specifies the manner in which production will be shared among the working owners. It typically considers both the relative ownership percentages and the depth at which production is extracted. Different formulas may be used to calculate each owner's share based on their respective leasehold interests and production contributions. 4. Allocation of costs: The agreement should outline how the costs associated with production, such as drilling, maintenance, and operating expenses, will be divided among the working owners. The allocation can be based on ownership percentages, depth-specific costs, or other agreed-upon methods. 5. Reporting and accounting: To ensure transparency and accountability, this section establishes the obligations of the working owners to maintain accurate records of production, expenses, and revenue. It may also dictate the frequency and format of financial reporting. 6. Dispute resolution: In case of disagreements or disputes arising from the agreement, a provision for the resolution mechanism, such as arbitration or mediation, should be included. Different types or variations of the Nevada Commingling Agreement may exist depending on the specific circumstances and requirements of the parties involved. Some examples include agreements focused on commingling oil from different formations, agreements addressing multiple wells within the same project, or agreements specific to a particular depth interval of a well. Overall, the Nevada Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth serves as a vital legal framework to facilitate efficient and fair production of minerals while considering the various ownership interests and formations present in Nevada's geologically complex regions.A Nevada 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 contract that governs the joint production of oil, gas, or other minerals from different formations within the same well bore in Nevada. This agreement is specifically designed to address the situation where leasehold ownership varies as to depth, meaning that different parties may own the rights to different portions of the well at different depths. The primary purpose of such an agreement is to establish a mechanism for the equitable sharing of production among the working owners, ensuring that each party benefits proportionally according to their respective leasehold interests in the different formations and depths. The Nevada Commingling Agreement can include various clauses and provisions to regulate the production activities, including: 1. Definition of terms: This section of the agreement provides definitions for key terms used throughout the document, such as working interest, leasehold ownership, formations, well bore, depth, and commingling. 2. Grant of rights: This section outlines the granted rights and responsibilities of the working owners concerning the production operations. It typically includes provisions for allowing commingling among different formations within the same well bore. 3. Sharing of production: This clause specifies the manner in which production will be shared among the working owners. It typically considers both the relative ownership percentages and the depth at which production is extracted. Different formulas may be used to calculate each owner's share based on their respective leasehold interests and production contributions. 4. Allocation of costs: The agreement should outline how the costs associated with production, such as drilling, maintenance, and operating expenses, will be divided among the working owners. The allocation can be based on ownership percentages, depth-specific costs, or other agreed-upon methods. 5. Reporting and accounting: To ensure transparency and accountability, this section establishes the obligations of the working owners to maintain accurate records of production, expenses, and revenue. It may also dictate the frequency and format of financial reporting. 6. Dispute resolution: In case of disagreements or disputes arising from the agreement, a provision for the resolution mechanism, such as arbitration or mediation, should be included. Different types or variations of the Nevada Commingling Agreement may exist depending on the specific circumstances and requirements of the parties involved. Some examples include agreements focused on commingling oil from different formations, agreements addressing multiple wells within the same project, or agreements specific to a particular depth interval of a well. Overall, the Nevada Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth serves as a vital legal framework to facilitate efficient and fair production of minerals while considering the various ownership interests and formations present in Nevada's geologically complex regions.
