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 Wake North Carolina Relinquishment Provision — Horizontal Well refers to a specific regulation governing oil and gas exploration and production in the Wake County region of North Carolina. This provision outlines the guidelines and conditions under which horizontal wells need to be relinquished or surrendered by the operator once they are no longer in use or economically viable. The horizontal well relinquishment provision is designed to ensure responsible and sustainable development of oil and gas resources in Wake County. It aims to protect the environment, mitigate potential risks to public health and safety, and promote the efficient use of resources. This provision specifically applies to horizontal wells, which are a type of well bore design used in the extraction of oil and gas resources. In Wake County, there are different types of relinquishment provisions based on specific criteria and circumstances. These may include the following: 1. Abandoned Horizontal Well Relinquishment: This provision outlines the process and requirements for operators to relinquish wells that have been permanently abandoned due to various factors, such as depletion of resources, economic considerations, or changes in market conditions. 2. Non-Producing Horizontal Well Relinquishment: Under this provision, operators are required to relinquish wells that have not been producing or generating economic benefits for a certain period of time. The defined timeframe may vary based on local regulations and industry standards. 3. Unplugged or Inactive Horizontal Well Relinquishment: This provision focuses on the relinquishment of wells that have not been properly plugged, resulting in potential risks to groundwater or surface water contamination. It establishes guidelines and procedures for operators to ensure the safe and effective abandonment of such wells. 4. Expired Lease Horizontal Well Relinquishment: If a lease agreement for oil and gas exploration and production has expired without the operator renewing or extending it, this provision dictates the surrender of the horizontal wells associated with that lease. This aims to prevent the unnecessary occupation of land and the potential environmental liabilities linked to unproductive wells. In summary, the Wake North Carolina Relinquishment Provision — Horizontal Well is a crucial regulatory framework that stipulates the relinquishment of horizontal wells in Wake County. Its purpose is to safeguard the environment, public health, and resource efficiency, while also ensuring responsible and accountable oil and gas operations.
