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 Texas Relinquishment Provision, also known as the Texas Relinquishment Clause or simply TRP, is a vital component of oil and gas leases in Texas. This provision primarily concerns horizontal well drilling operations, which have gained significant popularity in the state's oil and gas industry due to their enhanced productivity. The TRP is designed to address the situation where a landowner, who has leased their mineral rights to an oil and gas company, wants to prevent their land from being subject to horizontal well drilling. It provides the landowner with the ability to exclude a specific portion or area of their property from being developed as a horizontal well. This provision ensures that landowners have some control over the location of drilling operations and can safeguard their property from potential surface and subsurface disturbances, environmental concerns, or other issues associated with horizontal well development. Different types of Texas Relinquishment Provision — Horizontal Well: 1. Surface Relinquishment: This type of TRP allows the landowner to exclude a specific surface area of their property from horizontal well drilling operations while still allowing the drilling to take place underneath the relinquished surface area. It grants the landowner the right to continue using the surface for other purposes such as agriculture, livestock grazing, residential activities, or any other land use. 2. Subsurface Relinquishment: In this case, the landowner retains control only over a specific subsurface interval or formation and allows drilling operations above or below the relinquished interval. This type of TRP is often used if the landowner wishes to protect a specific reservoir or protect groundwater resources present within a certain subsurface depth. 3. Hybrid Relinquishment: The hybrid relinquishment type combines both surface and subsurface relinquishment. It provides the landowner with the ability to exclude a specific combination of surface and subsurface areas, offering more flexibility and tailored management of oil and gas development on their property. The specific terms and conditions of the Texas Relinquishment Provision — Horizontal Well can vary depending on negotiations between the landowner and the oil and gas company. It is crucial for both parties to thoroughly discuss and clarify the scope and limitations of the TRP to avoid any conflicts or misunderstandings down the line.The Texas Relinquishment Provision, also known as the Texas Relinquishment Clause or simply TRP, is a vital component of oil and gas leases in Texas. This provision primarily concerns horizontal well drilling operations, which have gained significant popularity in the state's oil and gas industry due to their enhanced productivity. The TRP is designed to address the situation where a landowner, who has leased their mineral rights to an oil and gas company, wants to prevent their land from being subject to horizontal well drilling. It provides the landowner with the ability to exclude a specific portion or area of their property from being developed as a horizontal well. This provision ensures that landowners have some control over the location of drilling operations and can safeguard their property from potential surface and subsurface disturbances, environmental concerns, or other issues associated with horizontal well development. Different types of Texas Relinquishment Provision — Horizontal Well: 1. Surface Relinquishment: This type of TRP allows the landowner to exclude a specific surface area of their property from horizontal well drilling operations while still allowing the drilling to take place underneath the relinquished surface area. It grants the landowner the right to continue using the surface for other purposes such as agriculture, livestock grazing, residential activities, or any other land use. 2. Subsurface Relinquishment: In this case, the landowner retains control only over a specific subsurface interval or formation and allows drilling operations above or below the relinquished interval. This type of TRP is often used if the landowner wishes to protect a specific reservoir or protect groundwater resources present within a certain subsurface depth. 3. Hybrid Relinquishment: The hybrid relinquishment type combines both surface and subsurface relinquishment. It provides the landowner with the ability to exclude a specific combination of surface and subsurface areas, offering more flexibility and tailored management of oil and gas development on their property. The specific terms and conditions of the Texas Relinquishment Provision — Horizontal Well can vary depending on negotiations between the landowner and the oil and gas company. It is crucial for both parties to thoroughly discuss and clarify the scope and limitations of the TRP to avoid any conflicts or misunderstandings down the line.
