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.
Oklahoma Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth In Oklahoma, the 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 significant agreement in the oil and gas industry. It allows multiple working interest owners to combine production from different formations within a single well bore, even when leasehold ownership differs in terms of depth. The primary purpose of this agreement is to optimize oil and gas production and streamline operations by allowing the co-development of multiple formations within a single well bore. By pooling the resources, working owners can access and extract hydrocarbons efficiently, reducing costs and maximizing production potential. This practice is particularly common in areas with multiple reservoirs present at different depths. Distinct types of Oklahoma Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth, include: 1. Lease-based Commingling Agreement: This type of agreement is entered into when different working interest owners hold separate leases that partially overlap in depth. In such cases, the agreement defines the rights and responsibilities of each party concerning commingling production and sharing proceeds. 2. Unit Agreement Commingling: In situations where working interest owners are part of an unitized operation or drilling unit, this agreement outlines the terms for commingling production from different formations within the designated area. It allows for efficient resource extraction when the unit encompasses various leasehold depths. 3. Condominium Agreement: This unique type of commingling agreement is specifically designed for properties with leasehold ownership varying in different formations out of the same well bore. It provides a framework for co-development and operation, ensuring fair sharing of costs, production, and revenues among the working interest owners. The execution of an Oklahoma Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore requires careful consideration of legal and operational aspects. It outlines the specifics of how the commingled production will be allocated and distributed, addressing concerns like shared expenses, revenue distribution, and regulatory compliance. By utilizing this agreement, working interest owners can overcome ownership complexities and work together efficiently to harness the full potential of the oil and gas reserves. It encourages collaboration among stakeholders while ensuring equitable sharing of costs and benefits associated with production from different formations within a specific well bore.Oklahoma Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth In Oklahoma, the 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 significant agreement in the oil and gas industry. It allows multiple working interest owners to combine production from different formations within a single well bore, even when leasehold ownership differs in terms of depth. The primary purpose of this agreement is to optimize oil and gas production and streamline operations by allowing the co-development of multiple formations within a single well bore. By pooling the resources, working owners can access and extract hydrocarbons efficiently, reducing costs and maximizing production potential. This practice is particularly common in areas with multiple reservoirs present at different depths. Distinct types of Oklahoma Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth, include: 1. Lease-based Commingling Agreement: This type of agreement is entered into when different working interest owners hold separate leases that partially overlap in depth. In such cases, the agreement defines the rights and responsibilities of each party concerning commingling production and sharing proceeds. 2. Unit Agreement Commingling: In situations where working interest owners are part of an unitized operation or drilling unit, this agreement outlines the terms for commingling production from different formations within the designated area. It allows for efficient resource extraction when the unit encompasses various leasehold depths. 3. Condominium Agreement: This unique type of commingling agreement is specifically designed for properties with leasehold ownership varying in different formations out of the same well bore. It provides a framework for co-development and operation, ensuring fair sharing of costs, production, and revenues among the working interest owners. The execution of an Oklahoma Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore requires careful consideration of legal and operational aspects. It outlines the specifics of how the commingled production will be allocated and distributed, addressing concerns like shared expenses, revenue distribution, and regulatory compliance. By utilizing this agreement, working interest owners can overcome ownership complexities and work together efficiently to harness the full potential of the oil and gas reserves. It encourages collaboration among stakeholders while ensuring equitable sharing of costs and benefits associated with production from different formations within a specific well bore.
