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.
Louisiana Relinquishment Provision — Horizontal Well: A Comprehensive Overview The Louisiana Relinquishment Provision is a crucial component of the state's oil and gas regulatory framework, specifically pertaining to horizontal well drilling operations. This provision governs the relinquishment requirements and regulations that operators must adhere to in order to retain their leases and mineral rights while drilling horizontal wells. Keywords: Louisiana Relinquishment Provision, horizontal well, drilling operations, regulatory framework, leases, mineral rights In the context of this provision, a horizontal well refers to a type of well bore configuration that deviates from the traditional vertical drilling approach and instead drills laterally through the hydrocarbon-bearing formation. Horizontal wells have gained significant popularity due to their ability to maximize hydrocarbon recovery rates by accessing a larger reservoir area. The Louisiana Relinquishment Provision includes provisions that aim to ensure the efficient utilization of oil and gas resources while also preserving the rights of mineral owners and safeguarding the environment. These provisions define certain timeframes and conditions under which operators must relinquish portions of their leased acreage if they fail to meet production or drilling obligations. One type of Louisiana Relinquishment Provision related to horizontal wells is the "Production-Based Relinquishment." Under this provision, operators are required to relinquish acreage if their wells do not achieve a specified minimum production rate within a stipulated timeframe. This provision prevents operators from holding onto non-productive acreage indefinitely, thereby encouraging more effective use of available resources. Another type of Louisiana Relinquishment Provision is the "Drilling-Based Relinquishment." This provision comes into play if an operator fails to drill a required number of wells within a given timeframe, the specific conditions of which are specified in the provisions. It ensures that operators do not hold onto large swaths of leased acreage without actively developing them. The Louisiana Relinquishment Provision has been instrumental in promoting responsible and efficient well development within the state. By imposing certain relinquishment requirements, it encourages operators to focus their efforts on areas with the highest potential for productivity, preventing the hoarding of leases without meaningful development. Overall, the Louisiana Relinquishment Provision, specifically applied to horizontal well drilling operations, serves as a vital element of the state's regulatory framework. It promotes the efficient utilization of oil and gas resources, protects the rights of mineral owners, and advances responsible well development practices. Keywords: Louisiana Relinquishment Provision, horizontal well, drilling operations, regulatory framework, productive acreage, oil and gas resources.
