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.
Cook Illinois Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth The Cook Illinois 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 that governs the commingling of production from various formations within a single well bore. This agreement is particularly relevant in cases where multiple leasehold owners have varying ownership rights based on different depths within the same well. This type of agreement is crucial in ensuring efficient and cost-effective production operations, as it allows owners with different leasehold interests to combine their production from different formations. By commingling the production, operators can optimize the use of the well bore and infrastructure while minimizing costs associated with separate well bores and facilities. The Cook Illinois Commingling Agreement provides guidelines and provisions to determine how the commingled production will be allocated among the working interest owners. This allocation is typically based on the proportional ownership interests and the productive capacity of each formation. There can be different types of Cook Illinois Commingling Agreements, depending on the specific circumstances and requirements of the parties involved. These may include: 1. Cook Illinois Commingling Agreement — Uniform Ownership: This type of agreement is applicable when all working interest owners have equal ownership rights throughout the depth of the well bore. In this case, the commingling provisions focus on the allocation of production based on proportional interests among the owners. 2. Cook Illinois Commingling Agreement — Varying Ownership Interests: This agreement is utilized when the ownership interests vary as to depth within the same well bore. It outlines specific provisions for allocating production based on both proportional interests and the depth-specific ownership rights of each working interest owner. 3. Cook Illinois Commingling Agreement — Formation-Specific Allocation: This type of agreement is implemented when certain formations within the same well bore have exclusive ownership rights tied to specific working interest owners. It establishes provisions that allocate production based on formation-specific ownership rights, considering both proportional interests and depth variations. 4. Cook Illinois Commingling Agreement — Operational Guidelines: In cases where multiple formations within a single well bore are intended to be commingled, this agreement provides operational guidelines for the commingling process. It includes provisions for accurate measurement, metering, reporting, and periodic reviews to ensure compliance with the agreement and industry standards. These agreements are essential in the oil and gas industry to facilitate effective utilization of well bores and achieve economic benefits for all working interest owners involved. They provide clarity, promote fair distribution of production, and enhance overall operational efficiency while accounting for the varying leasehold ownership rights based on depth.Cook Illinois Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth The Cook Illinois 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 that governs the commingling of production from various formations within a single well bore. This agreement is particularly relevant in cases where multiple leasehold owners have varying ownership rights based on different depths within the same well. This type of agreement is crucial in ensuring efficient and cost-effective production operations, as it allows owners with different leasehold interests to combine their production from different formations. By commingling the production, operators can optimize the use of the well bore and infrastructure while minimizing costs associated with separate well bores and facilities. The Cook Illinois Commingling Agreement provides guidelines and provisions to determine how the commingled production will be allocated among the working interest owners. This allocation is typically based on the proportional ownership interests and the productive capacity of each formation. There can be different types of Cook Illinois Commingling Agreements, depending on the specific circumstances and requirements of the parties involved. These may include: 1. Cook Illinois Commingling Agreement — Uniform Ownership: This type of agreement is applicable when all working interest owners have equal ownership rights throughout the depth of the well bore. In this case, the commingling provisions focus on the allocation of production based on proportional interests among the owners. 2. Cook Illinois Commingling Agreement — Varying Ownership Interests: This agreement is utilized when the ownership interests vary as to depth within the same well bore. It outlines specific provisions for allocating production based on both proportional interests and the depth-specific ownership rights of each working interest owner. 3. Cook Illinois Commingling Agreement — Formation-Specific Allocation: This type of agreement is implemented when certain formations within the same well bore have exclusive ownership rights tied to specific working interest owners. It establishes provisions that allocate production based on formation-specific ownership rights, considering both proportional interests and depth variations. 4. Cook Illinois Commingling Agreement — Operational Guidelines: In cases where multiple formations within a single well bore are intended to be commingled, this agreement provides operational guidelines for the commingling process. It includes provisions for accurate measurement, metering, reporting, and periodic reviews to ensure compliance with the agreement and industry standards. These agreements are essential in the oil and gas industry to facilitate effective utilization of well bores and achieve economic benefits for all working interest owners involved. They provide clarity, promote fair distribution of production, and enhance overall operational efficiency while accounting for the varying leasehold ownership rights based on depth.
