This form is used when any party electing not to participate in an exploratory well after the exploratory well has been drilled, relinquish and assign to the Drilling Party or Parties one hundred percent (100%) of its rights, title and interests in the Drilling Unit and the eight (8) Drilling Units directly and diagonally offsetting the Drilling Unit on which the well was drilled.
The Kentucky Relinquishment Provision — Exploratory Well is an important aspect of oil and gas exploration in the state of Kentucky. This provision outlines the specific regulations and requirements that operators must follow when they drill an exploratory well and decide to relinquish or temporarily suspend operations. Keywords: Kentucky Relinquishment Provision, Exploratory Well, oil and gas exploration. Exploratory wells are drilled primarily to gather geological and geophysical data, evaluate the presence of oil and gas deposits, and determine the potential for commercial production. The Kentucky Relinquishment Provision ensures that operators adhere to certain guidelines during the drilling and post-drilling phases of exploratory well operations. Under the Kentucky Relinquishment Provision, there are three main types of relinquishment for exploratory wells: 1. Temporary Suspension: If an operator encounters unforeseen circumstances or needs to temporarily suspend operations at an exploratory well, they must follow the guidelines outlined in the provision. This includes proper well capping, securing the site, and notifying the appropriate regulatory authorities. 2. Permanent Relinquishment: If the operator determines that the exploratory well does not hold the potential for commercial production or further exploration, they must relinquish the well and restore the site. The provision specifies the steps that must be taken, such as well plugging, site cleanup, and proper land reclamation. 3. Well Conversions: In some cases, exploratory wells may be converted into production wells if the operator discovers viable oil or gas reserves. The Kentucky Relinquishment Provision includes guidelines for obtaining the necessary permits and approvals to convert the well, along with requirements for ongoing production operations. It is important for operators to communicate and coordinate their plans with the Kentucky Department of Energy Development and Independence (DEVI) to ensure compliance with the specific regulations outlined in the Kentucky Relinquishment Provision. This includes submitting detailed plans, providing regular updates, and obtaining necessary approvals or permits before initiating any relinquishment or conversion activities. In summary, the Kentucky Relinquishment Provision — Exploratory Well is a set of regulations and guidelines that govern the relinquishment, temporary suspension, and conversion of exploratory wells in Kentucky. Operators must follow these provisions to ensure proper well abandonment, site restoration, and compliance with state laws and environmental regulations.
