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.
Allegheny Pennsylvania 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 agreement designed to address issues related to co-ownership and production in the oil and gas industry in the Allegheny area of Pennsylvania. This agreement is particularly relevant when multiple owners have varying rights to the depth of a well bore, and when there are different geological formations within the same well. There are different types of Allegheny Pennsylvania Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth, including: 1. General Commingling Agreement: This type of agreement is used when there is a need to combine production from different formations within the same well bore, where the leasehold ownership varies in terms of depth. It establishes the rights and responsibilities of the involved parties in terms of sharing costs, revenues, and allocating production from the different formations. 2. Formation-Specific Commingling Agreement: In cases where specific geological formations within the well bore have different leasehold ownership structures, a formation-specific commingling agreement may be required. This agreement focuses on the co-mingling of production from a specific formation and sets out the terms, guidelines, and responsibilities related to its extraction and distribution. 3. Depth-Specific Commingling Agreement: When the variation in leasehold ownership specifically pertains to the depth at which production is extracted from a well bore, a depth-specific commingling agreement is required. This agreement lays out the guidelines for combining production from different depths and addresses the associated ownership rights, costs, and revenue distribution among the working owners. 4. Allocation Agreement: In instances where different working owners possess leaseholds with varying depths, an allocation agreement may be utilized. This agreement outlines the mechanisms for determining and allocating production quantities, revenues, and costs based on the specific depth of each owner's leasehold interest. Overall, Allegheny Pennsylvania 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 crucial legal instrument that provides a framework for working owners to collaborate and efficiently manage production operations, ensuring fair distribution of costs and revenues while extracting resources from multiple formations within the same well bore in the Allegheny area of Pennsylvania.
