This provision is for an Agreement where there is the expectation that one or more horizontal wells may be drilled within the Contract Area. This section addresses the drilling of Horizontal Wells and that they shall remain the sole property and information of the Operator
California Proprietary Technology Horizontalel— - Restriction on Disclosure refers to a set of regulations and measures implemented by the state of California to safeguard proprietary technological advancements and trade secrets associated with horizontal well drilling. This policy aims to protect the interests of companies involved in the oil and gas industry within California by limiting the disclosure of sensitive data. Horizontal well drilling is a technique used to extract oil and gas from underground reservoirs in a more efficient and cost-effective manner. It involves drilling a well vertically until it reaches a certain depth, and then gradually bending the well bore to a horizontal orientation to access the targeted hydrocarbon zone. By accessing and harnessing proprietary technology, oil and gas companies in California gain a competitive edge in the industry. These advancements can include specialized drilling techniques, innovative equipment, unique well designs, and optimized production methods. Strict guidelines are imposed to ensure the confidentiality of such proprietary technology, preventing unauthorized access and disclosure. Different types of California Proprietary Technology Horizontalel— - Restriction on Disclosure may include: 1. Drilling Techniques and Methods: This encompasses unique drilling techniques, such as rotary steerable systems, coiled tubing drilling, and managed pressure drilling, that enhance efficiency and accuracy in horizontal well drilling operations. Restriction on Disclosure ensures that competitors cannot replicate or exploit these methods. 2. Well bore Design and Completion: Proprietary technology related to well bore designs, such as optimized lateral length, innovative casing and cementing solutions, and advanced well completions, increases the productivity and longevity of horizontal wells. Restriction on Disclosure prevents competitors from benefiting from these technological advancements. 3. Hydraulic Fracturing and Reservoir Characterization: With the advent of unconventional reservoirs, proprietary technologies related to hydraulic fracturing and advanced reservoir characterization techniques have gained significant importance. Restriction on Disclosure protects the trade secrets associated with different fracturing fluids, prop pants, and reservoir quality analysis tools. 4. Down hole Tools and Equipment: Proprietary tools and equipment used in horizontal well drilling, like mud motors, rotary steerable systems, logging-while-drilling (LED) tools, and measurement-while-drilling (MID) tools, play a crucial role in optimizing drilling operations. Restriction on Disclosure ensures that competitors do not gain access to these technological advancements. It is imperative for oil and gas companies in California to comply with the Restriction on Disclosure policies surrounding California Proprietary Technology — Horizontal Well. By safeguarding these trade secrets, companies can maintain their competitive edge, attract investments, and continue to innovate within the dynamic oil and gas industry.
