This form is used when the parties own undivided leasehold interests in the Lease as to depths from the surface of the ground to a Specific Depth. The parties acknowledge that the production from a well on the leasehold interest will be obtained from depths in which the ownership is not common. Thus, the parties find it necessary to enter into this Agreement to enable the parties to each be paid a proportionate part of the commingled production from the separate depths in which they own interests.
A Virgin Islands Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth is a legal document that governs the procedures and rights of multiple working interest owners who share the production from different formations within the same well bore in the Virgin Islands. This agreement becomes essential when the leasehold ownership varies as to depth, meaning that different parties own different portions of the well bore at distinct depths. When it comes to the types of the Virgin Islands Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth, there are usually two common categories: 1. Vertical Commingling Agreement: A vertical commingling agreement applies when different working interest owners hold leasehold ownership at different depths vertically within the same well bore. This agreement allows for the commingling of production from different reservoir formations, enabling efficient extraction and production from both formations using a single well bore. The agreement defines the allocation of production rights, expenses, and responsibilities among the working interest owners while considering leasehold ownership variations as to depth. 2. Horizontal Commingling Agreement: A horizontal commingling agreement is employed when working interest owners have leasehold ownership rights at different horizontal depths within the same well bore. In a horizontal agreement, the focus is on regulating the commingling of production from different formations situated horizontally. This agreement addresses the allocation of production, costs, and responsibilities among the working interest owners taking into account their leasehold ownership variations as to depth. Both types of commingling agreements are aimed at promoting the efficient use of resources, minimizing costs, and ensuring fair distribution of production proceeds among the working interest owners. They establish guidelines for well operation, production sharing, cost allocation, revenue distribution, and dispute resolution mechanisms. Overall, a Virgin Islands Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth is a vital legal framework that facilitates collaborative production activities between different working interest owners with varying leasehold ownership sat different depths within a single well bore.A Virgin Islands Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth is a legal document that governs the procedures and rights of multiple working interest owners who share the production from different formations within the same well bore in the Virgin Islands. This agreement becomes essential when the leasehold ownership varies as to depth, meaning that different parties own different portions of the well bore at distinct depths. When it comes to the types of the Virgin Islands Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth, there are usually two common categories: 1. Vertical Commingling Agreement: A vertical commingling agreement applies when different working interest owners hold leasehold ownership at different depths vertically within the same well bore. This agreement allows for the commingling of production from different reservoir formations, enabling efficient extraction and production from both formations using a single well bore. The agreement defines the allocation of production rights, expenses, and responsibilities among the working interest owners while considering leasehold ownership variations as to depth. 2. Horizontal Commingling Agreement: A horizontal commingling agreement is employed when working interest owners have leasehold ownership rights at different horizontal depths within the same well bore. In a horizontal agreement, the focus is on regulating the commingling of production from different formations situated horizontally. This agreement addresses the allocation of production, costs, and responsibilities among the working interest owners taking into account their leasehold ownership variations as to depth. Both types of commingling agreements are aimed at promoting the efficient use of resources, minimizing costs, and ensuring fair distribution of production proceeds among the working interest owners. They establish guidelines for well operation, production sharing, cost allocation, revenue distribution, and dispute resolution mechanisms. Overall, a Virgin Islands Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth is a vital legal framework that facilitates collaborative production activities between different working interest owners with varying leasehold ownership sat different depths within a single well bore.
