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 "Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth" in West Virginia specifically pertains to the management and allocation of production from multiple formations within a single well bore, where the ownership rights of the leasehold interests differ in terms of depth. Such an agreement regulates how the production from various formations within the well bore will be pooled, distributed, and shared among the respective leasehold owners. It ensures fairness and minimizes conflicts among the working owners involved. This type of agreement is particularly important in cases where the leasehold ownership varies as to depth, as it helps avoid discrepancies and disputes regarding the rights to extraction and distribution of resources. The West Virginia Commingling Agreement recognizes the complexity associated with multiple formations and varying ownership interests. It provides a framework for determining the proportionate share of production from each formation based on the respective leasehold ownership rights. This agreement promotes cooperation, efficiency, and coordinated planning among working owners, enabling maximum utilization of assets and resources. Different types of West Virginia Commingling Agreements Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth may include: 1. Unitized Commingling Agreement: This agreement establishes a unified approach to commingling production from multiple formations within the same well bore, regardless of leasehold ownership variances. It often involves the creation of a drilling or production unit, where all working owners pool their interests in the purposes of commingling and allocation. 2. Depth-Specific Commingling Agreement: This type of agreement delineates the specific depths or formations where commingling is permitted and regulates how the production from those specific depths will be attributed to the respective working owners. It may involve the establishment of separate allocation mechanisms for each depth interval. 3. Proportional Ownership Commingling Agreement: In this agreement, the proportionate ownership interests of the leasehold owners are taken into account. It determines the allocation of commingled production based on the individual percentage ownership in each formation or depth interval. This approach ensures fairness and reflects the relative contribution of each working owner to the shared asset. 4. Operating Agreement Amendment: Some commingling arrangements may be achieved through an amendment to the existing operating agreement. This amendment would specifically address the commingling of production from different formations within the same well bore and provide guidelines for the allocation of production based on varying leasehold ownership depths. In conclusion, a West Virginia 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 critical legal instrument governing the pooling, distribution, and allocation of production from multiple formations within a well bore. Its purpose is to ensure fairness and streamline operations among working owners with varying leasehold rights. Different types of agreements can be tailored to address specific circumstances and ownership structures within the state of West Virginia.A "Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth" in West Virginia specifically pertains to the management and allocation of production from multiple formations within a single well bore, where the ownership rights of the leasehold interests differ in terms of depth. Such an agreement regulates how the production from various formations within the well bore will be pooled, distributed, and shared among the respective leasehold owners. It ensures fairness and minimizes conflicts among the working owners involved. This type of agreement is particularly important in cases where the leasehold ownership varies as to depth, as it helps avoid discrepancies and disputes regarding the rights to extraction and distribution of resources. The West Virginia Commingling Agreement recognizes the complexity associated with multiple formations and varying ownership interests. It provides a framework for determining the proportionate share of production from each formation based on the respective leasehold ownership rights. This agreement promotes cooperation, efficiency, and coordinated planning among working owners, enabling maximum utilization of assets and resources. Different types of West Virginia Commingling Agreements Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth may include: 1. Unitized Commingling Agreement: This agreement establishes a unified approach to commingling production from multiple formations within the same well bore, regardless of leasehold ownership variances. It often involves the creation of a drilling or production unit, where all working owners pool their interests in the purposes of commingling and allocation. 2. Depth-Specific Commingling Agreement: This type of agreement delineates the specific depths or formations where commingling is permitted and regulates how the production from those specific depths will be attributed to the respective working owners. It may involve the establishment of separate allocation mechanisms for each depth interval. 3. Proportional Ownership Commingling Agreement: In this agreement, the proportionate ownership interests of the leasehold owners are taken into account. It determines the allocation of commingled production based on the individual percentage ownership in each formation or depth interval. This approach ensures fairness and reflects the relative contribution of each working owner to the shared asset. 4. Operating Agreement Amendment: Some commingling arrangements may be achieved through an amendment to the existing operating agreement. This amendment would specifically address the commingling of production from different formations within the same well bore and provide guidelines for the allocation of production based on varying leasehold ownership depths. In conclusion, a West Virginia 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 critical legal instrument governing the pooling, distribution, and allocation of production from multiple formations within a well bore. Its purpose is to ensure fairness and streamline operations among working owners with varying leasehold rights. Different types of agreements can be tailored to address specific circumstances and ownership structures within the state of West Virginia.
