This form is used in the event any part to this Agreement elects not to participate in a Horizontal Exploratory Well, the non-participating party shall, on commencement of operations for the well, relinquish to the participating party one hundred percent (100%) of its rights, title, and interests in and to that portion of the Contract Area included within the Drilling Unit for the well and one hundred percent (100%) of the party’s rights, title, and interests in and to that portion of the Contract Area.
The Bexar Texas Relinquishment Provision — Horizontal Well is a significant aspect of oil and gas drilling in the Bexar County, Texas region. This provision outlines the specific conditions and requirements for operators to relinquish unused acreage in horizontal well drilling projects, ensuring efficient use of land and resources. The Bexar Texas Relinquishment Provision — Horizontal Well focuses specifically on horizontal drilling techniques, which involve drilling a well diagonally or parallel to the formations to maximize resource extraction. This method allows operators to access multiple reservoirs and increase production while minimizing surface disturbance. There are various types of Bexar Texas Relinquishment Provision — Horizontal Wells, each tailored to specific situations and conditions. These include: 1. Primary Term Relinquishment: This provision requires operators to relinquish any acreage not actively being developed during the primary term. It ensures that operators do not hold onto unused acreage, promoting the efficient allocation of resources. 2. Spacing Relinquishment: This provision outlines requirements for operators to relinquish acreage that falls outside the permitted spacing units. It ensures that resources are effectively managed within designated boundaries, preventing overlapping well interference. 3. Drilling or Completion Relinquishment: This provision stipulates that operators must relinquish specific acreage if they do not commence drilling or complete the well within a specified timeframe. This helps prevent operators from holding acreage indefinitely without pursuing active drilling programs. 4. Production Relinquishment: This provision requires operators to relinquish acreage if the well is no longer productive or fails to meet production thresholds. It ensures that non-productive areas can be reevaluated for future drilling or returned to landowners for alternative uses. 5. Surface Disturbance Relinquishment: This provision focuses on minimizing the surface disturbance caused by drilling activities. Operators must relinquish any unused surface acreage once drilling and production operations have ceased, allowing for land reclamation and restoration. Overall, the Bexar Texas Relinquishment Provision — Horizontal Well plays a crucial role in resource management and responsible drilling practices. By enforcing timely and efficient use of acreage in horizontal well drilling, it aims to maintain a sustainable balance between oil and gas extraction, environmental protection, and landowner rights.
