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 West Virginia Relinquishment Provision — Horizontal Well refers to a specific regulation governing the relinquishment of land areas surrounding horizontal wells in the state of West Virginia. This provision outlines the circumstances, requirements, and conditions under which an operator must surrender or relinquish a portion of the acreage it holds in a horizontal well development. The primary purpose of the relinquishment provision is to ensure the efficient and judicious development of oil and gas resources, while also protecting the rights of mineral owners and preventing excessive concentration of acreage by a single operator. By enforcing this provision, the state aims to encourage fair competition and maximize the economic benefits for all stakeholders involved. There are different types of West Virginia Relinquishment Provisions — Horizontal Well, each based on distinct criteria, including: 1. Time-based relinquishment provision: This type of provision mandates the gradual relinquishment of a certain percentage or portion of the acreage initially held by the operator within a predetermined time frame. For example, an operator might be required to relinquish 50% of the land area in the first five years of development. 2. Production-based relinquishment provision: This provision requires the operator to surrender a specified amount of acreage once a certain level of production is reached. This ensures that the operator does not maintain control over significant acreage without actively producing hydrocarbons or creating a backlog of undeveloped wells. 3. Field-specific relinquishment provision: In certain cases, the relinquishment provision may be tailored to specific oil and gas fields or reservoirs. This customization allows for a more nuanced approach, considering the unique geological characteristics and production potential of each area. 4. Joint relinquishment provision: This provision governs situations where multiple operators collaborate on a horizontal well project. It specifies the proportional relinquishment of acreage by each operator based on their individual investment and contribution to the project. To comply with the West Virginia Relinquishment Provision — Horizontal Well, operators must carefully monitor and track their acreage holdings, ensuring they maintain compliance with the relinquishment requirements as defined by the state's regulatory authorities. Non-compliance may lead to penalties or even the termination of drilling permits.The West Virginia Relinquishment Provision — Horizontal Well refers to a specific regulation governing the relinquishment of land areas surrounding horizontal wells in the state of West Virginia. This provision outlines the circumstances, requirements, and conditions under which an operator must surrender or relinquish a portion of the acreage it holds in a horizontal well development. The primary purpose of the relinquishment provision is to ensure the efficient and judicious development of oil and gas resources, while also protecting the rights of mineral owners and preventing excessive concentration of acreage by a single operator. By enforcing this provision, the state aims to encourage fair competition and maximize the economic benefits for all stakeholders involved. There are different types of West Virginia Relinquishment Provisions — Horizontal Well, each based on distinct criteria, including: 1. Time-based relinquishment provision: This type of provision mandates the gradual relinquishment of a certain percentage or portion of the acreage initially held by the operator within a predetermined time frame. For example, an operator might be required to relinquish 50% of the land area in the first five years of development. 2. Production-based relinquishment provision: This provision requires the operator to surrender a specified amount of acreage once a certain level of production is reached. This ensures that the operator does not maintain control over significant acreage without actively producing hydrocarbons or creating a backlog of undeveloped wells. 3. Field-specific relinquishment provision: In certain cases, the relinquishment provision may be tailored to specific oil and gas fields or reservoirs. This customization allows for a more nuanced approach, considering the unique geological characteristics and production potential of each area. 4. Joint relinquishment provision: This provision governs situations where multiple operators collaborate on a horizontal well project. It specifies the proportional relinquishment of acreage by each operator based on their individual investment and contribution to the project. To comply with the West Virginia Relinquishment Provision — Horizontal Well, operators must carefully monitor and track their acreage holdings, ensuring they maintain compliance with the relinquishment requirements as defined by the state's regulatory authorities. Non-compliance may lead to penalties or even the termination of drilling permits.
