This form is used when the parties own undivided leasehold interests in the Lease as to depths from the surface of the ground to a Specific Depth. The parties acknowledge that the production from a well on the leasehold interest will be obtained from depths in which the ownership is not common. Thus, the parties find it necessary to enter into this Agreement to enable the parties to each be paid a proportionate part of the commingled production from the separate depths in which they own interests.
A Nebraska Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth, is a legal contract that governs the collaborative production of oil and gas from different formations within the same well bore in the state of Nebraska. This agreement is especially relevant when leasehold ownership varies as to depth, meaning different owners may have rights to different depths within the same well bore. The purpose of this type of commingling agreement is to ensure the efficient and equitable extraction of oil and gas resources from various formations while considering the diverse ownership interests. It provides a framework for working owners to collaborate and combine production from different formations, optimizing well performance and minimizing operational costs. The Nebraska Commingling Agreement among Working Owners as to Production from Different Formations Out of the Same Well Bore offers a variety of benefits. By allowing multiple formations to be produced concurrently, it maximizes the utilization of the well bore and reduces the need for additional drilling operations. This lowers overall expenses and environmental impact. It also facilitates the pooling of resources, allowing smaller leasehold owners to benefit from the production potential of larger formations. One type of this commingling agreement is the Nebraska Horizontal Commingling Agreement. This specific agreement applies to situations where horizontal drilling techniques are employed to target multiple formations simultaneously. Horizontal drilling has gained popularity due to its ability to access unconventional plays and enhance resource recovery. The Nebraska Horizontal Commingling Agreement is designed to address the unique challenges and opportunities arising from horizontally drilled wells and mixed ownership structures. Another type is the Nebraska Vertical Commingling Agreement. Vertical drilling is a conventional method of exploration and production, typically used in areas with predictable formation depths. This agreement specifically addresses the challenges faced when working owners have varying leasehold ownership depths, allowing them to efficiently produce from multiple formations within a single well bore. Overall, a Nebraska Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth, is a legally binding agreement that promotes cooperation, maximizes resource extraction, and ensures fair distribution of production revenues among working owners. It provides a practical framework for efficient production optimization and encourages responsible resource development in the state of Nebraska.
