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 Puerto Rico Relinquishment Provision — Horizontal Well is a crucial aspect of oil and gas exploration and production in Puerto Rico. This provision refers to the legal framework that governs the relinquishment of drilling rights in horizontal wells. In Puerto Rico, horizontal wells are drilled to tap into unconventional oil and gas resources present in shale formations. This drilling technique involves the horizontal extension of the well bore while intersecting the reservoir rock, thereby maximizing hydrocarbon extraction. The Puerto Rico Relinquishment Provision — Horizontal Well is designed to ensure responsible and sustainable development of these resources. It outlines the rules and regulations that operators must follow when relinquishing their drilling rights in horizontal wells once the extraction is complete or deemed economically unviable. This provision serves multiple purposes, including environmental protection, land management, and equitable resource distribution. It ensures that operators restore the land to its original condition or take necessary remedial measures after operations cease, minimizing any potential ecological impact. Additionally, the Puerto Rico Relinquishment Provision — Horizontal Well facilitates a fair and transparent process for relinquishing drilling rights. It ensures that the government collects the necessary data and documentation about the well, including production records, geological information, and well completion reports. There are no distinct types of Puerto Rico Relinquishment Provision — Horizontal Well. However, the provision may vary depending on factors such as the specific shale formation being exploited, the depth of the well, and the environmental sensitivity of the area. These variables may lead to adjustments in the relinquishment requirements, culminating in customized provisions for different projects or regions. In conclusion, the Puerto Rico Relinquishment Provision — Horizontal Well is an essential legal framework that enables the sustainable development of oil and gas resources in Puerto Rico. It ensures the responsible management of drilling rights, environmental protection, and the equitable distribution of benefits. By following this provision, operators working in the region can play their part in supporting the growth of Puerto Rico's energy industry while safeguarding its natural resources.
