This form is used for the Designation of a Successor Operator pursuant to a specified Section of a Communitization Agreement. First Party is designated by Second Parties as Operator of the communitized area, and First Party desires to assume all the rights, duties, and obligations of Operator under the Communitization Agreement.
This Agreement is incorporated into this Designation by reference and made a part of it as fully and effectively as though the Agreement were expressly set forth in this Designation.
Phoenix, Arizona Designation of Successor Operator Agreement A Designation of Successor Operator Agreement is a legal document often used in the oil and gas industry, specifically in the context of commoditization agreements. Phoenix, Arizona, being a region with a significant presence of oil and gas activities, has its own rules and regulations governing these agreements. 1. Definition and Purpose: A Designation of Successor Operator Agreement is a contractual arrangement that allows for the transfer of operational responsibilities from one party to another within a comm unitized oil or gas field. The purpose of this agreement is to efficiently manage and coordinate the development and operation of the field, enhance extraction efficiency, and maximize resource recovery. 2. Commoditization Agreement: A Commoditization Agreement refers to a legally binding contract that consolidates multiple oil and gas leases into a single production unit. It enables collaborating leaseholders to pool their interests and consolidate their operations to avoid inefficient extraction practices, reduce costs, and promote optimal resource management. 3. Types of Designation of Successor Operator Agreement: Within the realm of Designation of Successor Operator Agreements, there are several distinct types, each addressing specific circumstances and requirements. These include: a. Standard Successor Operator Agreement: This is the most common type of agreement whereby the current operator of the comm unitized field designates a new operator to take over the operational responsibilities. The new operator must meet certain qualifications and demonstrate technical competence and financial capability to ensure the continued efficient operation of the field. b. Emergency Successor Operator Agreement: In exceptional circumstances such as a sudden operator's inability to carry out operations due to bankruptcy, force majeure, or other unforeseen events, an Emergency Successor Operator Agreement can be executed. This agreement designates a new operator to step in immediately, ensuring that operations continue with minimal disruption. c. Temporary Successor Operator Agreement: When the current operator anticipates a temporary inability to fulfill their obligations due to planned maintenance, major repairs, or other planned events, a Temporary Successor Operator Agreement is utilized. This agreement designates a temporary operator, typically for a predetermined period, to manage operations during the incumbent operator's absence. 4. Legal Considerations: Phoenix, Arizona, being subject to specific state laws and regulations, requires that Designation of Successor Operator Agreements comply with relevant provisions. Legal considerations include the qualifications and criteria for a successor operator, notification requirements, financial assurances, and the approval process from regulatory authorities. Successful commoditization operations within Phoenix, Arizona rely heavily on effective Designation of Successor Operator Agreements. By implementing these agreements, operators can ensure operational continuity, minimize disruptions, and sustainably extract valuable oil and gas resources within the region.Phoenix, Arizona Designation of Successor Operator Agreement A Designation of Successor Operator Agreement is a legal document often used in the oil and gas industry, specifically in the context of commoditization agreements. Phoenix, Arizona, being a region with a significant presence of oil and gas activities, has its own rules and regulations governing these agreements. 1. Definition and Purpose: A Designation of Successor Operator Agreement is a contractual arrangement that allows for the transfer of operational responsibilities from one party to another within a comm unitized oil or gas field. The purpose of this agreement is to efficiently manage and coordinate the development and operation of the field, enhance extraction efficiency, and maximize resource recovery. 2. Commoditization Agreement: A Commoditization Agreement refers to a legally binding contract that consolidates multiple oil and gas leases into a single production unit. It enables collaborating leaseholders to pool their interests and consolidate their operations to avoid inefficient extraction practices, reduce costs, and promote optimal resource management. 3. Types of Designation of Successor Operator Agreement: Within the realm of Designation of Successor Operator Agreements, there are several distinct types, each addressing specific circumstances and requirements. These include: a. Standard Successor Operator Agreement: This is the most common type of agreement whereby the current operator of the comm unitized field designates a new operator to take over the operational responsibilities. The new operator must meet certain qualifications and demonstrate technical competence and financial capability to ensure the continued efficient operation of the field. b. Emergency Successor Operator Agreement: In exceptional circumstances such as a sudden operator's inability to carry out operations due to bankruptcy, force majeure, or other unforeseen events, an Emergency Successor Operator Agreement can be executed. This agreement designates a new operator to step in immediately, ensuring that operations continue with minimal disruption. c. Temporary Successor Operator Agreement: When the current operator anticipates a temporary inability to fulfill their obligations due to planned maintenance, major repairs, or other planned events, a Temporary Successor Operator Agreement is utilized. This agreement designates a temporary operator, typically for a predetermined period, to manage operations during the incumbent operator's absence. 4. Legal Considerations: Phoenix, Arizona, being subject to specific state laws and regulations, requires that Designation of Successor Operator Agreements comply with relevant provisions. Legal considerations include the qualifications and criteria for a successor operator, notification requirements, financial assurances, and the approval process from regulatory authorities. Successful commoditization operations within Phoenix, Arizona rely heavily on effective Designation of Successor Operator Agreements. By implementing these agreements, operators can ensure operational continuity, minimize disruptions, and sustainably extract valuable oil and gas resources within the region.
