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.
Utah Obligatory Wells are a crucial part of oil and gas operations in the state of Utah, providing an essential source for extracting valuable natural resources. These wells are typically drilled in accordance with government regulations and requirements, ensuring their compliance and safety standards. One type of Utah Obligatory Well is the Utah Obligatory Oil Well. These wells are designed specifically for extracting crude oil from underground reservoirs in Utah. They are strategically drilled in locations where geological surveys and exploration studies indicate the presence of oil deposits. Another type is the Utah Obligatory Gas Well, which is designed for extracting natural gas from underground reservoirs in Utah. Natural gas is a cleaner alternative to other fossil fuels and plays a significant role in meeting the energy demands in the region. These wells are drilled in similar geological formations as the oil wells, with the main difference being the targeted resource. Utah Obligatory Wells follow a systematic process, starting with site selection and obtaining the necessary permits from regulatory bodies such as the Utah Division of Oil, Gas, and Mining. The drilling process involves the use of specialized equipment, including drill rigs and drilling mud, to penetrate the Earth's surface and reach the underground reservoirs. After drilling is complete, well completion techniques are employed to ensure the well's structural integrity and optimize resource extraction. Various types of well completion methods may be utilized, such as casing and cementing to stabilize the well bore and prevent any potential leakage or damage to surrounding rock formations. The extraction phase involves utilizing advanced technologies like hydraulic fracturing (fracking) and enhanced oil recovery techniques to maximize production. These methods help release trapped oil or gas from the porous rock formations, allowing it to flow to the surface for collection. Utah Obligatory Wells are subject to regular inspections and compliance checks by government agencies to ensure environmental protection and adherence to safety protocols. Well operators are responsible for proper maintenance, waste management, and mitigating any potential risks associated with drilling and production activities. In summary, Utah Obligatory Wells play a vital role in the extraction of valuable resources like oil and gas in Utah. They adhere to strict regulations and are categorized into oil wells and gas wells. These wells undergo a systematic process from site selection to extraction, employing advanced technologies to maximize production while maintaining safety and environmental standards.
