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 San Bernardino California Commingling Agreement is a legal contract entered into by working owners who have leasehold ownership in a well bore that produces oil or gas from different formations, where the leasehold ownership varies as to depth. This agreement allows for the organized and efficient extraction of resources from the same well bore, despite the variations in ownership rights at different depths. The purpose of a San Bernardino California Commingling Agreement is to establish a fair and mutually beneficial arrangement among working owners, ensuring that production from different formations can be commingled and marketed efficiently. It provides a framework for cooperation, coordination, and allocation of production proceeds, thereby minimizing conflicts and maximizing the overall recovery of valuable resources. The Commingling Agreement sets out the specific terms and conditions under which the commingling of production will occur, often identifying the different types of formations present in the well bore and specifying the respective leasehold ownership rights associated with each formation. Common types of San Bernardino California Commingling Agreements Among Working Owners may include: 1. Depth-Based Commingling Agreement: This type of agreement divides the well bore into different depth intervals or formations, with each owner assigned specific leasehold ownership rights at certain depths. The agreement outlines the procedures, responsibilities, and revenue-sharing mechanisms for commingling the production from these different formations. 2. Reservoir-Specific Commingling Agreement: In cases where the well bore penetrates multiple reservoirs or geologic formations, this type of agreement focuses on the commingling of production from specific reservoirs. It addresses the complexities in determining production allocation from each reservoir and the proportional sharing of revenues among working owners. 3. Function-Based Commingling Agreement: Sometimes, the commingling agreement may be structured based on the functionality of the produced fluids. For instance, it could separate oil and gas production, establishing different rules for commingling and allocation of revenues for each commodity. It is essential for all working owners to thoroughly understand the terms and conditions outlined in the agreement, including the rights and responsibilities associated with their leasehold ownership at different depths. Additionally, it is crucial to consult legal professionals with expertise in oil and gas law to ensure compliance with relevant state and federal regulations governing commingling operations in San Bernardino County, California.A San Bernardino California Commingling Agreement is a legal contract entered into by working owners who have leasehold ownership in a well bore that produces oil or gas from different formations, where the leasehold ownership varies as to depth. This agreement allows for the organized and efficient extraction of resources from the same well bore, despite the variations in ownership rights at different depths. The purpose of a San Bernardino California Commingling Agreement is to establish a fair and mutually beneficial arrangement among working owners, ensuring that production from different formations can be commingled and marketed efficiently. It provides a framework for cooperation, coordination, and allocation of production proceeds, thereby minimizing conflicts and maximizing the overall recovery of valuable resources. The Commingling Agreement sets out the specific terms and conditions under which the commingling of production will occur, often identifying the different types of formations present in the well bore and specifying the respective leasehold ownership rights associated with each formation. Common types of San Bernardino California Commingling Agreements Among Working Owners may include: 1. Depth-Based Commingling Agreement: This type of agreement divides the well bore into different depth intervals or formations, with each owner assigned specific leasehold ownership rights at certain depths. The agreement outlines the procedures, responsibilities, and revenue-sharing mechanisms for commingling the production from these different formations. 2. Reservoir-Specific Commingling Agreement: In cases where the well bore penetrates multiple reservoirs or geologic formations, this type of agreement focuses on the commingling of production from specific reservoirs. It addresses the complexities in determining production allocation from each reservoir and the proportional sharing of revenues among working owners. 3. Function-Based Commingling Agreement: Sometimes, the commingling agreement may be structured based on the functionality of the produced fluids. For instance, it could separate oil and gas production, establishing different rules for commingling and allocation of revenues for each commodity. It is essential for all working owners to thoroughly understand the terms and conditions outlined in the agreement, including the rights and responsibilities associated with their leasehold ownership at different depths. Additionally, it is crucial to consult legal professionals with expertise in oil and gas law to ensure compliance with relevant state and federal regulations governing commingling operations in San Bernardino County, California.
