This form is used in the event any part to this Agreement elects not to participate in a Horizontal Exploratory Well, the non-participating party shall, on commencement of operations for the well, relinquish to the participating party one hundred percent (100%) of its rights, title, and interests in and to that portion of the Contract Area included within the Drilling Unit for the well and one hundred percent (100%) of the party’s rights, title, and interests in and to that portion of the Contract Area.
The Oklahoma Relinquishment Provision — Horizontal Well refers to a specific clause in Oklahoma's oil and gas statutes that governs the surrender or release of acreage that has been leased for horizontal drilling purposes. This provision outlines the conditions and procedures under which an operator can relinquish or abandon certain areas within a horizontal well unit. The purpose of the Oklahoma Relinquishment Provision — Horizontal Well is to allow operators to efficiently and effectively manage their drilling operations, reduce costs, and optimize production. It enables them to surrender undeveloped or unproductive portions of the leased land, thereby focusing resources on the most promising areas and maximizing overall efficiency. There are several types of Oklahoma Relinquishment Provisions — Horizontal Well that exist to address different scenarios. Some of the most common types include: 1. Partial Relinquishment: This provision allows an operator to voluntarily release a portion of the acreage within a horizontal well unit while retaining the remaining area. Operators may exercise this option if they determine that a specific subset of the leased land is not economically viable or if they want to concentrate their efforts on high-potential sections. 2. Temporary Relinquishment: In certain situations, operators may temporarily relinquish the development rights to a portion of the horizontal well unit. This could be due to various reasons such as legal disputes, regulatory issues, or unforeseen circumstances. Temporary relinquishment allows operators to pause drilling operations while resolving the related challenges. 3. Permanent Relinquishment: Permanent relinquishment occurs when an operator decides to permanently abandon the development rights to a specific section of the leased land. This may happen if extensive exploration and assessment suggest that the area is not suitable for economically viable production or if there are compelling environmental or legal considerations. 4. Area of Mutual Agreement (AMA) Relinquishment: This type of relinquishment provision is applicable in cases where multiple operators within a horizontal well unit agree to modify the boundaries of their respective leased areas. The AMA relinquishment allows for reallocation of acreage to optimize coordination, resource management, and operational efficiency among the operators. Overall, the Oklahoma Relinquishment Provision — Horizontal Well plays a crucial role in facilitating effective management of oil and gas operations. It grants operators the flexibility to adjust their lease acreage according to economic viability, environmental considerations, or legal requirements, ensuring optimal utilization of resources and long-term success in horizontal drilling endeavors.
