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 Lima Arizona Relinquishment Provision refers to a legal provision that governs the relinquishment of horizontal wells in the Pima County, Arizona area. It outlines the specific rules and regulations that operators must follow when ending the production and operation of these types of wells. A horizontal well, also known as a lateral well, is a type of well bore that is drilled horizontally rather than vertically. It involves a vertical well bore that extends laterally through productive rock formations, allowing for increased exposure to hydrocarbon reservoirs. The Lima Arizona Relinquishment Provision — Horizontal Well ensures that operators comply with necessary procedures and guidelines when ceasing production from a horizontal well. It aims to protect the environment, land, and community, while ensuring the efficient management of oil and gas resources. The provision comprises several key components, including: 1. Well Plugging and Abandonment: The relinquishment provision sets requirements for properly plugging and abandoning the well. This includes using appropriate cementing materials to seal off the well bore and prevent any potential leakage of fluids into surrounding formations. 2. Site Restoration: The provision highlights the importance of restoring the well site to its original condition, promoting environmental sustainability and visual harmony with the surrounding area. Operators must undertake remedial actions to mitigate any adverse effects caused during the drilling and production process. 3. Regulatory Notification: The provision mandates that operators notify the relevant regulatory authorities of their intention to relinquish a horizontal well. This allows authorities to monitor and enforce compliance with the provisions outlined. Types of Lima Arizona Relinquishment Provision — Horizontal Wells: 1. Oil Wells: Referring to horizontal wells specifically used for the extraction of crude oil reserves found in the Pima County, Arizona region. These wells follow the guidelines of the Relinquishment Provision when cessation of production is required. 2. Natural Gas Wells: This category pertains to horizontal wells that primarily extract natural gas from the Pima County, Arizona area. Operators must adhere to the Relinquishment Provision guidelines when decommissioning or relinquishing these wells. Overall, the Lima Arizona Relinquishment Provision — Horizontal Well safeguards the proper decommissioning and abandonment of horizontal wells in the region. It ensures that operators meet legal obligations and environmental standards, promoting responsible management of oil and gas resources.The Lima Arizona Relinquishment Provision refers to a legal provision that governs the relinquishment of horizontal wells in the Pima County, Arizona area. It outlines the specific rules and regulations that operators must follow when ending the production and operation of these types of wells. A horizontal well, also known as a lateral well, is a type of well bore that is drilled horizontally rather than vertically. It involves a vertical well bore that extends laterally through productive rock formations, allowing for increased exposure to hydrocarbon reservoirs. The Lima Arizona Relinquishment Provision — Horizontal Well ensures that operators comply with necessary procedures and guidelines when ceasing production from a horizontal well. It aims to protect the environment, land, and community, while ensuring the efficient management of oil and gas resources. The provision comprises several key components, including: 1. Well Plugging and Abandonment: The relinquishment provision sets requirements for properly plugging and abandoning the well. This includes using appropriate cementing materials to seal off the well bore and prevent any potential leakage of fluids into surrounding formations. 2. Site Restoration: The provision highlights the importance of restoring the well site to its original condition, promoting environmental sustainability and visual harmony with the surrounding area. Operators must undertake remedial actions to mitigate any adverse effects caused during the drilling and production process. 3. Regulatory Notification: The provision mandates that operators notify the relevant regulatory authorities of their intention to relinquish a horizontal well. This allows authorities to monitor and enforce compliance with the provisions outlined. Types of Lima Arizona Relinquishment Provision — Horizontal Wells: 1. Oil Wells: Referring to horizontal wells specifically used for the extraction of crude oil reserves found in the Pima County, Arizona region. These wells follow the guidelines of the Relinquishment Provision when cessation of production is required. 2. Natural Gas Wells: This category pertains to horizontal wells that primarily extract natural gas from the Pima County, Arizona area. Operators must adhere to the Relinquishment Provision guidelines when decommissioning or relinquishing these wells. Overall, the Lima Arizona Relinquishment Provision — Horizontal Well safeguards the proper decommissioning and abandonment of horizontal wells in the region. It ensures that operators meet legal obligations and environmental standards, promoting responsible management of oil and gas resources.
