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.
Phoenix, Arizona Relinquishment Provision — Horizontal Well The Phoenix, Arizona Relinquishment Provision, specifically related to horizontal wells, is a critical aspect of oil and gas leasing and drilling within the region. The provision ensures that the operator relinquishes a portion of the leased acreage if certain conditions are met, allowing for efficient resource management and potential future exploration opportunities. Keywords: Phoenix, Arizona, relinquishment provision, horizontal well, oil and gas, leasing, drilling, acreage, resource management, exploration opportunities. In Phoenix, Arizona, the relinquishment provision for horizontal wells plays a significant role in maintaining balance and sustainability in the oil and gas industry. Horizontal wells, also known as lateral wells, are a type of drilling technique widely used in unconventional reservoirs, allowing for greater access to hydrocarbon deposits. The Phoenix relinquishment provision requires the operator to relinquish a portion of the leased acreage if specific criteria are satisfied. The provision is designed to prevent the hoarding of land and foster responsible resource management. It encourages operators to efficiently utilize the leased area and relinquish portions they do not plan to actively explore or develop, making room for other prospective parties. There are several types of relinquishment provisions applicable to horizontal wells in Phoenix, Arizona. These include: 1. Production-Based Relinquishment: This type of provision requires the operator to relinquish a portion of the leased land after a certain level of production has been reached. It ensures that acreage is freed up for potential new discoveries and prevents the indefinite holding of non-productive areas. 2. Time-Based Relinquishment: Under this provision, the operator is obliged to relinquish a portion of the leased acreage if a specified time period has elapsed without any significant drilling or exploration activity. It ensures that operators actively pursue development rather than holding on to utilized land. 3. Economic Viability Relinquishment: This provision is triggered when the operator determines that the potential economic return of a particular section of the leased area is not viable. It allows the operator to relinquish the uneconomic portion, focusing resources on more promising areas. The Phoenix, Arizona Relinquishment Provision — Horizontal Well is crucial for maintaining an efficient and competitive oil and gas industry. It encourages responsible resource management, prevents acreage hoarding, and paves the way for potential new entrants to explore and develop productive regions.
