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 Tarrant 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 a legal contract that allows multiple owners of oil and gas leases to join together to produce from different formations within the same well bore. This agreement is particularly relevant when leasehold ownership varies as to depth, indicating that different owners have rights to different depths within the well bore. The purpose of this agreement is to establish a framework for the proper allocation of production and expenses between the working owners involved, ensuring fair distribution of revenue and joint operation of the well. It addresses the challenges that arise when multiple parties have overlapping interests in a single well bore but own different portions of the leasehold. Keywords: Tarrant Texas, commingling agreement, working owners, production, different formations, same well bore, leasehold ownership, varies as to depth. Different Types of Tarrant 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: 1. Traditional Commingling Agreement: This type of agreement outlines the terms and conditions under which multiple working owners can combine their production from various formations within the same well bore. It ensures proper allocation of production volumes and revenue based on each owner's share of the leasehold ownership. 2. Depth-Based Commingling Agreement: In cases where leasehold ownership varies as to depth, this agreement specifically addresses the complexities arising from different owners having rights to various depths within the well bore. It establishes clear guidelines for the proportional sharing of production and expenses based on the depth-specific ownership interests. 3. Formation-Specific Commingling Agreement: When multiple formations with different productive capacities are present within a single well bore, this agreement focuses on the allocation of production from each formation among the working owners. It considers factors such as formation type and productivity to determine fair distribution of revenues. 4. Expense-Sharing Commingling Agreement: This type of agreement primarily concentrates on the allocation of expenses related to the joint operation of the well. It establishes a mechanism for sharing the costs associated with drilling, production, maintenance, and other operational activities among the working owners, considering their respective leasehold ownership. It's important to note that the specific names or designations for these types of agreements may vary depending on the preferences of the parties involved or the legal jurisdiction in which the agreement is formulated.A Tarrant 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 a legal contract that allows multiple owners of oil and gas leases to join together to produce from different formations within the same well bore. This agreement is particularly relevant when leasehold ownership varies as to depth, indicating that different owners have rights to different depths within the well bore. The purpose of this agreement is to establish a framework for the proper allocation of production and expenses between the working owners involved, ensuring fair distribution of revenue and joint operation of the well. It addresses the challenges that arise when multiple parties have overlapping interests in a single well bore but own different portions of the leasehold. Keywords: Tarrant Texas, commingling agreement, working owners, production, different formations, same well bore, leasehold ownership, varies as to depth. Different Types of Tarrant 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: 1. Traditional Commingling Agreement: This type of agreement outlines the terms and conditions under which multiple working owners can combine their production from various formations within the same well bore. It ensures proper allocation of production volumes and revenue based on each owner's share of the leasehold ownership. 2. Depth-Based Commingling Agreement: In cases where leasehold ownership varies as to depth, this agreement specifically addresses the complexities arising from different owners having rights to various depths within the well bore. It establishes clear guidelines for the proportional sharing of production and expenses based on the depth-specific ownership interests. 3. Formation-Specific Commingling Agreement: When multiple formations with different productive capacities are present within a single well bore, this agreement focuses on the allocation of production from each formation among the working owners. It considers factors such as formation type and productivity to determine fair distribution of revenues. 4. Expense-Sharing Commingling Agreement: This type of agreement primarily concentrates on the allocation of expenses related to the joint operation of the well. It establishes a mechanism for sharing the costs associated with drilling, production, maintenance, and other operational activities among the working owners, considering their respective leasehold ownership. It's important to note that the specific names or designations for these types of agreements may vary depending on the preferences of the parties involved or the legal jurisdiction in which the agreement is formulated.
