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 commingling agreement among working owners as to production from different formations out of the same well bore is a legal document that governs the collaboration and distribution of resources among leaseholders in Wake, North Carolina. This agreement is particularly necessary when leasehold ownership varies as to depth, implying that different parties may have rights or interests in various levels of the well bore. In Wake, North Carolina, there are two main types of commingling agreements among working owners as to production from different formations out of the same well bore, where leasehold ownership varies as to depth: 1. Depth-based Commingling Agreement: This type of agreement specifically addresses the depth variations in leasehold ownership. It establishes the guidelines and provisions for the leaseholders to maximize production from different formations within the well bore while considering their respective ownership rights based on depth. The agreement defines how ownership interests and corresponding revenue distributions will be determined for each participating party according to the specific depths explored or exploited. 2. Formation-based Commingling Agreement: This agreement primarily focuses on the production from different formations within the same well bore, regardless of the depth variations. In Wake, North Carolina, this type of agreement allows leaseholders to pool their resources and expertise to optimize production from multiple formations present in the well bore. The agreement outlines the rights, responsibilities, and revenue-sharing arrangements between the working owners, taking into account the specific formations involved. Both types of commingling agreements aim to ensure efficient resource extraction while fairly managing the interests of all working owners, considering the varying leasehold ownership rights as to depth in Wake, North Carolina. These legally binding documents play a crucial role in establishing clear guidelines, preventing disputes, and fostering cooperation among leaseholders.A commingling agreement among working owners as to production from different formations out of the same well bore is a legal document that governs the collaboration and distribution of resources among leaseholders in Wake, North Carolina. This agreement is particularly necessary when leasehold ownership varies as to depth, implying that different parties may have rights or interests in various levels of the well bore. In Wake, North Carolina, there are two main types of commingling agreements among working owners as to production from different formations out of the same well bore, where leasehold ownership varies as to depth: 1. Depth-based Commingling Agreement: This type of agreement specifically addresses the depth variations in leasehold ownership. It establishes the guidelines and provisions for the leaseholders to maximize production from different formations within the well bore while considering their respective ownership rights based on depth. The agreement defines how ownership interests and corresponding revenue distributions will be determined for each participating party according to the specific depths explored or exploited. 2. Formation-based Commingling Agreement: This agreement primarily focuses on the production from different formations within the same well bore, regardless of the depth variations. In Wake, North Carolina, this type of agreement allows leaseholders to pool their resources and expertise to optimize production from multiple formations present in the well bore. The agreement outlines the rights, responsibilities, and revenue-sharing arrangements between the working owners, taking into account the specific formations involved. Both types of commingling agreements aim to ensure efficient resource extraction while fairly managing the interests of all working owners, considering the varying leasehold ownership rights as to depth in Wake, North Carolina. These legally binding documents play a crucial role in establishing clear guidelines, preventing disputes, and fostering cooperation among leaseholders.
