This form is used for the Designation of a Successor Operator pursuant to a specified Section of a Communitization Agreement. First Party is designated by Second Parties as Operator of the communitized area, and First Party desires to assume all the rights, duties, and obligations of Operator under the Communitization Agreement.
This Agreement is incorporated into this Designation by reference and made a part of it as fully and effectively as though the Agreement were expressly set forth in this Designation.
The New Mexico Designation of Successor Operator and Commoditization Agreement are important legal documents that regulate the responsibilities, rights, and obligations of operators who are involved in oil and gas operations in the state of New Mexico. These agreements are utilized when there is a need to appoint a successor operator or when multiple operators opt to combine their operations within a specific geographic area, forming a comm unitized unit. The Designation of Successor Operator allows for the seamless transition of operator ship for an oil or gas well or a comm unitized unit. When the current operator wants to transfer its operator ship responsibilities to another party, the designation of successor operator agreement outlines the necessary procedures and requirements for a smooth transition. It ensures that the new operator is capable, experienced, and possesses the technical expertise to handle the operations effectively. The Commoditization Agreement, on the other hand, governs the joint development and production activities within a comm unitized unit. A comm unitized unit is an area in which multiple owners or operators pool their land and mineral interests, creating a cooperative effort to maximize the extraction and production of oil and gas reserves. This agreement provides a mechanism for efficient resource management, risk-sharing, and the establishment of equitable terms for all parties involved. Different types of New Mexico Designation of Successor Operator, Commoditization Agreements may vary based on factors such as the type of oil and gas operations, the geographical location, and the specific requirements of the involved parties. Some variations that may be mentioned or categorized as different types include: 1. Designation of Successor Operator for Conventional Oil and Gas Operations: This agreement type would specifically pertain to the designation of a successor operator for conventional oil and gas wells, where drilling and production methods are more traditional. 2. Designation of Successor Operator for Unconventional Resource Development: This agreement would focus on the transfer of operator ship for unconventional resources like shale gas, tight oil, or coal bed methane that require specialized techniques such as hydraulic fracturing. 3. Commoditization Agreement for Onshore Operations: This agreement type would be applicable to commoditization efforts within land-based oil and gas operations in New Mexico. 4. Commoditization Agreement for Offshore Operations: This agreement would outline the terms and conditions for commoditization efforts in offshore areas of New Mexico, such as those situated in the Gulf of Mexico. When entering into any variation of these agreements, it is crucial to consult legal experts and professionals well-versed in New Mexico's regulatory framework to ensure compliance with state laws and to protect the interests of all parties involved.
