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 York Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, where leasehold ownership varies as to depth, refers to a legally binding agreement among co-owners of an oil or gas well in New York. This agreement allows for the joint production of resources from different formations within the same well bore, even when leasehold ownership varies based on the depth of the formations. Here is a detailed description of the topic, incorporating relevant keywords: Title: New York Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth Introduction: In the oil and gas industry, New York provides specific guidelines and regulations for co-owners of wells to efficiently and effectively extract hydrocarbon resources. A crucial aspect of co-owning a well involves the New York Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, where leasehold ownership varies as to depth. This legally binding agreement ensures that multiple owners with varying leasehold interests can jointly produce resources from different formations within the same well bore. Key Elements of the New York Commingling Agreement: 1. Joint Production and Commingling: The primary purpose of the New York Commingling Agreement is to enable co-owners to combine production from different formations within a single well bore. This helps optimize resource extraction by allowing efficient utilization of the well and minimizing the need for multiple drilling operations. It also promotes cost-effectiveness and reduces environmental impact. 2. Varying Leasehold Ownership: One unique aspect of this agreement is that it accommodates different ownership interests based on the depth of formations. Co-owners may hold distinct leasehold rights to specific intervals or depths within the well bore. The agreement regulates how these varying ownership interests interact for efficient resource extraction. 3. Legal Compliance: The New York Commingling Agreement follows state laws and regulations regarding oil and gas production. All parties involved must adhere to the applicable statutes, rules, and environmental provisions. The agreement ensures that co-owners work together in compliance with state guidelines to prevent legal issues and protect the environment. 4. Revenue Sharing and Cost Allocation: The agreement outlines how proceeds from the commingled production will be allocated among the co-owners. Typically, sharing arrangements are based on the respective ownership percentages within each formation or depth specified in the leasehold interests. Moreover, the agreement may define cost-sharing mechanisms, such as the responsibility for operating expenses, maintenance, and well rehabilitation. Types of New York Commingling Agreements: 1. Traditional Commingling Agreement: This type of agreement combines production from different formations within the same well bore while accommodating varying leasehold ownership interests. It is commonly used when wells have varying reservoir pressures, heterogeneous formations, or when it is economically beneficial to commingle resources. 2. Zonal Commingling Agreement: In certain cases, co-owners may wish to target specific formations or zones separately, especially if there are substantial differences in their production characteristics. A zonal commingling agreement allows for separate development, production, and allocation of hydrocarbon resources from different formations within the same well bore. In conclusion, the New York Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth provides a legal framework for effective and efficient resource extraction. It enables co-owners to jointly produce resources from multiple formations within a single well bore, accommodating varying leasehold ownership interests at different depths. This agreement promotes optimal resource utilization, cost-effectiveness, and legal compliance while ensuring fair revenue sharing and cost allocation.A New York Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, where leasehold ownership varies as to depth, refers to a legally binding agreement among co-owners of an oil or gas well in New York. This agreement allows for the joint production of resources from different formations within the same well bore, even when leasehold ownership varies based on the depth of the formations. Here is a detailed description of the topic, incorporating relevant keywords: Title: New York Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth Introduction: In the oil and gas industry, New York provides specific guidelines and regulations for co-owners of wells to efficiently and effectively extract hydrocarbon resources. A crucial aspect of co-owning a well involves the New York Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, where leasehold ownership varies as to depth. This legally binding agreement ensures that multiple owners with varying leasehold interests can jointly produce resources from different formations within the same well bore. Key Elements of the New York Commingling Agreement: 1. Joint Production and Commingling: The primary purpose of the New York Commingling Agreement is to enable co-owners to combine production from different formations within a single well bore. This helps optimize resource extraction by allowing efficient utilization of the well and minimizing the need for multiple drilling operations. It also promotes cost-effectiveness and reduces environmental impact. 2. Varying Leasehold Ownership: One unique aspect of this agreement is that it accommodates different ownership interests based on the depth of formations. Co-owners may hold distinct leasehold rights to specific intervals or depths within the well bore. The agreement regulates how these varying ownership interests interact for efficient resource extraction. 3. Legal Compliance: The New York Commingling Agreement follows state laws and regulations regarding oil and gas production. All parties involved must adhere to the applicable statutes, rules, and environmental provisions. The agreement ensures that co-owners work together in compliance with state guidelines to prevent legal issues and protect the environment. 4. Revenue Sharing and Cost Allocation: The agreement outlines how proceeds from the commingled production will be allocated among the co-owners. Typically, sharing arrangements are based on the respective ownership percentages within each formation or depth specified in the leasehold interests. Moreover, the agreement may define cost-sharing mechanisms, such as the responsibility for operating expenses, maintenance, and well rehabilitation. Types of New York Commingling Agreements: 1. Traditional Commingling Agreement: This type of agreement combines production from different formations within the same well bore while accommodating varying leasehold ownership interests. It is commonly used when wells have varying reservoir pressures, heterogeneous formations, or when it is economically beneficial to commingle resources. 2. Zonal Commingling Agreement: In certain cases, co-owners may wish to target specific formations or zones separately, especially if there are substantial differences in their production characteristics. A zonal commingling agreement allows for separate development, production, and allocation of hydrocarbon resources from different formations within the same well bore. In conclusion, the New York Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth provides a legal framework for effective and efficient resource extraction. It enables co-owners to jointly produce resources from multiple formations within a single well bore, accommodating varying leasehold ownership interests at different depths. This agreement promotes optimal resource utilization, cost-effectiveness, and legal compliance while ensuring fair revenue sharing and cost allocation.
