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.
Bexar, Texas Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth Keywords: Bexar Texas, Commingling Agreement, Working Owners, Production, Different Formations, Same Well Bore, Leasehold Ownership, Depth Description: A Bexar, Texas Commingling Agreement among Working Owners as to production from different formations out of the same well bore is a legally binding agreement that allows for the joint production of oil, gas, or other minerals from multiple formations within a single well bore. This type of agreement is particularly applicable in areas where leasehold ownership varies as to depth, requiring coordination among working owners. The main purpose of this agreement is to facilitate efficient extraction and operations, as it eliminates the need for separate wells for each formation and streamlines the production process. By commingling the production, working owners can optimize resource recovery and reduce costs associated with drilling and maintaining multiple wells. In Bexar, Texas, there could be various types of commingling agreements among working owners, depending on the specific formations present and depth variations in leasehold ownership. Examples include agreements for the commingling of production from the Eagle Ford Shale and Austin Chalk formations, or agreements for commingling production from the Strawberry and Wolf camp formations. These agreements typically outline the rights and responsibilities of each working owner, including their proportionate share of costs, royalties, and production allocation. The Bexar, Texas Commingling Agreement among working owners as to production from different formations out of the same well bore ensures fair distribution of costs and production revenues, ensuring all stakeholders benefit from the development of multiple formations within a well bore. The agreement also establishes guidelines for apportioning production according to the leasehold ownership variations in depth, ensuring each working owner receives their rightful share based on their leasehold rights in specific formations. It is important for all working owners to thoroughly review and negotiate the terms of the agreement to protect their interests and maintain transparency in operations. Legal counsel is often sought to ensure the agreement aligns with applicable laws and regulations, safeguarding the rights and responsibilities of each working owner involved. In conclusion, the Bexar, Texas 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 an essential contract for efficient resource extraction and optimal profits. It encompasses various formations and depth variations, ensuring fair distribution of costs, royalties, and production allocation among working owners.
