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 Michigan Relinquishment Provision, also known as the Michigan Relinquishment Clause, refers to a specific regulation in the state of Michigan's oil and gas industry. This provision applies to exploratory wells and plays a crucial role in the management and allocation of oil and gas rights within the state. The Michigan Relinquishment Provision serves as a mechanism for governing the relinquishment and renewal of oil and gas leases for exploratory wells. It ensures a fair and organized process for determining when an exploration lease expires and when it can be renewed or released. There are various types of Michigan Relinquishment Provision — Exploratory Well, which include: 1. Primary Term: This is the initial period during which the lease is active. The primary term is typically a fixed period agreed upon by the parties involved, often ranging from a few months to several years. 2. Secondary Term: If an exploratory well is producing oil or gas during the primary term, the lease automatically enters the secondary term. The secondary term allows the operator to continue the exploration and extraction activities on the leased property. 3. Expiration and Relinquishment: At the end of the secondary term or if no production is occurring, the lease may expire or be relinquished. The specific conditions for expiration or relinquishment depend on the terms outlined in the lease agreement and the regulations set forth by the Michigan Department of Environment, Great Lakes, and Energy (EAGLE). 4. Renewal: If the exploration activities are successful and oil or gas is being produced, the lessee may have the option to renew the lease. Renewal usually requires meeting certain obligations, such as paying additional fees or demonstrating sufficient production levels. 5. Re-leasing: In cases where the original lease expires or is relinquished, the property may become available for re-leasing by other parties. This presents opportunities for new operators to pursue exploration and production activities in untapped areas. It is essential for all stakeholders involved in the Michigan oil and gas industry, including operators, landowners, and regulatory agencies, to understand and comply with the Michigan Relinquishment Provision. Adhering to this provision ensures a transparent and fair process for managing leases and promotes responsible exploration and production activities in the state.
