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.
Chicago Illinois Relinquishment Provision — Horizontal Well is a legal term used in the oil and gas industry to describe the process of abandoning or surrendering a horizontal well in the state of Illinois, specifically in the city of Chicago. In simplest terms, a relinquishment provision in Chicago Illinois for horizontal wells refers to the agreement between the operator (oil and gas company) and the regulatory authority (typically the Illinois Department of Natural Resources) to cease production and decommission a horizontal well upon completion of its economic life or when the well is no longer commercially viable. Here are some key details about the Chicago Illinois Relinquishment Provision — Horizontal Well: 1. Purpose: The primary purpose of the relinquishment provision is to ensure responsible and sustainable development of oil and gas resources in the state of Illinois. It is designed to protect the environment, prevent abandoned wells, and provide a mechanism for operators to relinquish their rights to a well. 2. Regulatory Authority: The Illinois Department of Natural Resources (DNR) is responsible for administering the relinquishment provision for horizontal wells in Chicago. The DNR sets guidelines and standards for well abandonment and decommissioning. 3. Process: When an operator decides to relinquish a horizontal well, they must submit an application to the DNR detailing their intention to cease production. The application typically includes relevant technical, environmental, and financial information. The DNR reviews the application and may conduct inspections to ensure compliance with regulations. 4. Decommissioning: Once approval is granted, the operator is required to safely plug and abandon the well. Plugging involves sealing the well bore to prevent any leakage of fluids or gases. The operator must follow IDNR-approved techniques and standards for decommissioning to minimize environmental impact. 5. Variations: While the term "Chicago Illinois Relinquishment Provision — Horizontal Well" generally refers to the abandonment process for horizontal wells, there can be variations in specific requirements and procedures depending on the location, size, and other factors. It is important for operators to consult and comply with the specific regulations and guidelines set forth by the DNR. In conclusion, the Chicago Illinois Relinquishment Provision — Horizontal Well is a regulatory mechanism that allows operators to permanently cease production and decommission horizontal wells in compliance with the Illinois Department of Natural Resources guidelines and standards. This provision aims to ensure the responsible and sustainable development of oil and gas resources in Chicago while safeguarding the environment.Chicago Illinois Relinquishment Provision — Horizontal Well is a legal term used in the oil and gas industry to describe the process of abandoning or surrendering a horizontal well in the state of Illinois, specifically in the city of Chicago. In simplest terms, a relinquishment provision in Chicago Illinois for horizontal wells refers to the agreement between the operator (oil and gas company) and the regulatory authority (typically the Illinois Department of Natural Resources) to cease production and decommission a horizontal well upon completion of its economic life or when the well is no longer commercially viable. Here are some key details about the Chicago Illinois Relinquishment Provision — Horizontal Well: 1. Purpose: The primary purpose of the relinquishment provision is to ensure responsible and sustainable development of oil and gas resources in the state of Illinois. It is designed to protect the environment, prevent abandoned wells, and provide a mechanism for operators to relinquish their rights to a well. 2. Regulatory Authority: The Illinois Department of Natural Resources (DNR) is responsible for administering the relinquishment provision for horizontal wells in Chicago. The DNR sets guidelines and standards for well abandonment and decommissioning. 3. Process: When an operator decides to relinquish a horizontal well, they must submit an application to the DNR detailing their intention to cease production. The application typically includes relevant technical, environmental, and financial information. The DNR reviews the application and may conduct inspections to ensure compliance with regulations. 4. Decommissioning: Once approval is granted, the operator is required to safely plug and abandon the well. Plugging involves sealing the well bore to prevent any leakage of fluids or gases. The operator must follow IDNR-approved techniques and standards for decommissioning to minimize environmental impact. 5. Variations: While the term "Chicago Illinois Relinquishment Provision — Horizontal Well" generally refers to the abandonment process for horizontal wells, there can be variations in specific requirements and procedures depending on the location, size, and other factors. It is important for operators to consult and comply with the specific regulations and guidelines set forth by the DNR. In conclusion, the Chicago Illinois Relinquishment Provision — Horizontal Well is a regulatory mechanism that allows operators to permanently cease production and decommission horizontal wells in compliance with the Illinois Department of Natural Resources guidelines and standards. This provision aims to ensure the responsible and sustainable development of oil and gas resources in Chicago while safeguarding the environment.
