This form is used when any party electing not to participate in an exploratory well after the exploratory well has been drilled, relinquish and assign to the Drilling Party or Parties one hundred percent (100%) of its rights, title and interests in the Drilling Unit and the eight (8) Drilling Units directly and diagonally offsetting the Drilling Unit on which the well was drilled.
The Oklahoma Relinquishment Provision — Exploratory Well is a clause in oil and gas leases that pertains to the termination or expiration of rights to explore for hydrocarbons in certain areas of Oklahoma. This provision is typically included to ensure that leaseholders do not indefinitely hold onto land without actively pursuing oil and gas exploration activities. The primary purpose of the Oklahoma Relinquishment Provision — Exploratory Well is to encourage responsible resource development and prevent speculative leasing. It requires the lessee to either drill an exploratory well within a specified time frame or relinquish the leasehold rights back to the lessor. There are several types of Oklahoma Relinquishment Provisions — Exploratory Well that can be found in leases, including: 1. Time-Based Provision: This type of provision stipulates that the lessee must drill an exploratory well within a certain period, typically a predetermined number of years, from the effective date of the lease. If the lessee fails to meet this deadline, the lease would automatically terminate, and the lessor would regain full control over the leased property. 2. Depth-Based Provision: This provision requires the lessee to drill an exploratory well to a specified depth within the defined time frame. If the lessee does not reach the designated depth within the given period, the lease would be considered relinquished, and the lessor's rights would be restored. 3. Obligation to Show Production: Some types of Oklahoma Relinquishment Provisions — Exploratory Well may require the lessee to demonstrate actual production from the leased premises. This provision ensures that exploration activities are not merely superficial but result in the extraction of viable hydrocarbon resources. Failure to establish production within the designated timeframe may lead to relinquishment of the lease. The purpose of these provisions is to prevent land speculation and encourage active exploration and production. By enforcing time or depth-based drilling obligations, the state can effectively manage the resource development process and ensure that leased lands are put to productive use. In summary, the Oklahoma Relinquishment Provision — Exploratory Well is an integral part of oil and gas leases in Oklahoma, aiming to promote responsible development and prevent speculative leasing. These provisions set time or depth-based obligations for lessees to either drill exploratory wells or relinquish the leasehold rights, ensuring that leased lands are actively utilized for hydrocarbon exploration and production.
