North Dakota Relinquishment Provision - All offset Wells

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Multi-State
Control #:
US-OG-716
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Description

This clause addresses the responsibilites in the event any Party elects not to participate in the drilling of a well and provides for the relinquishment of interest and assignments by that party.

The North Dakota Relinquishment Provision — All Offset Wells refers to a regulatory provision in the state of North Dakota that governs the relinquishment of oil and gas leases for wells located in proximity to other active wells. This provision ensures responsible development and efficient use of natural resources by preventing excessive proliferation of wells in a given area. Under this provision, if an operator holds multiple oil and gas leases within a specific geographic area, they must relinquish a certain percentage of the acreage associated with those leases if offset wells are drilled nearby. The purpose of this provision is to prevent over-drilling in a concentrated area and to promote the orderly development of oil and gas resources. Variations of the North Dakota Relinquishment Provision — All Offset Wells may include: 1. Distance-based relinquishment: This type of relinquishment provision requires operators to relinquish a certain percentage of their acreage if an offset well is drilled within a specific distance from their lease boundaries. 2. Density-based relinquishment: In this case, the relinquishment requirement is triggered if the density of wells within a designated area exceeds a predefined threshold. Once the threshold is met, the operator must relinquish a portion of their lease acreage to maintain a balanced well density. 3. Proportional-relinquishment: This type of relinquishment provision requires the operator to relinquish a percentage of their lease acreage proportionate to the number of offset wells drilled nearby. For example, if three offset wells are drilled, the operator may need to relinquish 30% of their acreage. The North Dakota Relinquishment Provision — All Offset Wells is designed to promote responsible and efficient oil and gas development while avoiding congested well locations. By ensuring a balanced distribution of wells, the provision protects the environment, minimizes surface disturbance, and maximizes the economic benefit for the state and operators. Keywords: North Dakota, relinquishment provision, offset wells, oil and gas leases, responsible development, natural resources, prevent over-drilling, acreage, orderly development, distance-based, density-based, proportional-relinquishment, well density, oil and gas development, surface disturbance, economic benefit.

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FAQ

Flaring and venting are controlled processes to dispose of gas, essential for emergency and safety purposes on oil and gas installations, and in situations where it may not be feasible for the gas to be used, exported or re-injected. Flaring is the ignition of gas, and venting is the release of unignited gas.

Department of Mineral Resources, Oil and Gas Division The Department of Mineral Resources' Oil and Gas Division regulates the drilling and production of oil and gas in North Dakota.

Flaring is a waste of a valuable natural resource that should either be used for productive purposes, such as generating power, or conserved. For instance, the amount of gas currently flared each year ? about 140 billion cubic meters ? could power the whole of sub-Saharan Africa.

Oil production increased by 5 percent to 80 million barrels per day (bbl/d) from 77 bbl/d in 2021. As a result, the global average flaring intensity?the amount of gas flared per barrel of oil produced?dropped to 4.7 m3/bbl in 2022 from 5.1 m3/bbl in 2021.

Flares must be equipped and operated with an automatic ignitor or a continuous burning pilot. Visible flare emissions must not exceed 20 percent opacity except that a maximum of 60 percent opacity is permissible for not more than one six-minute period per hour.

Flares must be equipped and operated with an automatic ignitor or a continuous burning pilot. Visible flare emissions must not exceed 20 percent opacity except that a maximum of 60 percent opacity is permissible for not more than one six-minute period per hour.

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"Completion" means an oil well shall be considered completed when the first oil is produced through wellhead equipment into tanks from the ultimate ... Aug 26, 2013 — "Completion" means an oil well shall be considered completed when the first oil is produced through wellhead equipment into tanks from the ...This section is applicable to all allocation and custody transfer metering stations measuring production from oil and gas wells within the state of North. by OL Anderson · 1982 · Cited by 9 — The interest owners may have refused to voluntarily pool because of a dispute over the sharing of production, the sharing of costs, the calculation of costs, or ... Multiple completed wells must at all times be operated, produced, and maintained to ensure the complete segregation of the various common sources of supply ... Unit must be determined by the North Dakota Office of the State Tax ... extraction on all wells on Non-Trust Lands. C. Within thirty (30) days of the end of the ... by AG Himebaugh · 1983 · Cited by 13 — Most farmout agreements cover default by providing that if the farmee fails to commence, drill, test, and plug and abandon or complete the initial test well as ... Sep 21, 2015 — The official case file must contain a complete record of all reviews and reports, including the geologic, reservoir engineering, and well. OPERATING AGREEMENTS FORMS PROGRAM. The Operating Agreements Forms Program Contains: The Joint Operating Agreement forms are patterned after the AAPL 1982 ... the filing of the initial Complaint, this case was not limited to specific wells. See: Register of Actions, at Doc. ID #2 (initial Complaint), ...

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North Dakota Relinquishment Provision - All offset Wells