This is a provision for an Operating Agreement that concerns the Assignment of rights to an obligatory well. It provides the assignment options if any proposed operations are necessary to maintain a Lease covered by the Agreement in force or an agreement to earn a lease(s) which would otherwise expire unless operations are conducted.
The Oklahoma Obligatory Well is a crucial part of the state's oil and gas industry, playing a significant role in the exploration, production, and extraction of natural resources. This detailed description will delve into the various aspects of the Oklahoma Obligatory Well, including its purpose, regulations, and different types. An Oklahoma Obligatory Well, also known as a Compulsory Pooling Well, is a well that is drilled to tap into a common pool or reservoir of oil or natural gas located underground. These wells are established when numerous mineral owners or leaseholders collectively own rights to the same reservoir but have not agreed on drilling operations. The Oklahoma Corporation Commission (OCC) oversees the regulations and compulsory pooling orders for these wells to ensure fair and efficient resource extraction. The primary purpose of Oklahoma Obligatory Wells is to facilitate the systematic development and production of oil and gas resources. When multiple parties with ownership interests in a reservoir fail to reach an agreement on extraction, the OCC can issue a compulsory pooling order that mandates their participation in a jointly drilled well. This pooling process helps prevent waste, safeguards the rights of mineral owners, and ensures the efficient extraction of resources. There are several types of Oklahoma Obligatory Wells, each distinguished by specific characteristics or purposes. These include: 1. Vertical Obligatory Wells: These wells are drilled straight down into the ground to reach the target reservoir. They are commonly used in areas or formations where the oil or gas deposits are relatively shallow or accessible. 2. Directional Obligatory Wells: Also known as deviated wells, these wells are drilled at an angle from the vertical. Directional drilling techniques are utilized to access reservoirs that are located at a significant depth or situated beneath challenging geologic formations. 3. Horizontal Obligatory Wells: Horizontal wells are drilled vertically to a certain depth and then turned horizontally to follow the productive layer of the reservoir. These wells maximize contact with the hydrocarbon-bearing rock formation, allowing for enhanced production rates and increased oil or gas recovery. 4. Multi-Lateral Obligatory Wells: These wells involve the drilling of multiple branches or legs from a single well bore. They allow operators to access multiple zones within a reservoir or target different formations simultaneously, optimizing resource exploitation. It is important to note that the specific types of Oklahoma Obligatory Wells employed depend on the geological characteristics, reservoir conditions, and the operators' objectives in a particular area. In summary, Oklahoma Obligatory Wells are mandatory wells established by the OCC to efficiently develop and extract oil and gas resources from common reservoirs. These wells, including vertical, directional, horizontal, and multi-lateral variations, play a vital role in the state's oil and gas industry, ensuring the responsible utilization of its natural resources while upholding the rights of individual owners.
