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 New York Relinquishment Provision — Exploratory Well is a crucial policy in the state of New York that outlines the process and requirements for relinquishing an exploratory well. This provision allows operators to terminate their activities and obligations related to an exploratory well that is no longer deemed productive or viable. Keywords: New York, Relinquishment Provision, Exploratory Well, policy, process, requirements, operators, activities, obligations, productive, viable. The New York Relinquishment Provision — Exploratory Well is implemented to ensure the responsible management and safe abandonment of wells that have reached the end of their useful life. By adhering to this provision, operators are required to go through a formal process, which includes assessment, documentation, and regulatory compliance. There are various types of New York Relinquishment Provision — Exploratory Wells, each tailored to specific situations and conditions. These include: 1. Dry Hole Relinquishment Provision: This type of relinquishment provision is applicable when an exploratory well does not yield the expected results or fails to discover any significant quantities of oil, gas, or other resources. Operators must provide thorough documentation and evidence of the well's lack of productivity. 2. Exhausted Resource Relinquishment Provision: In cases where an exploratory well has depleted its resources and is no longer able to produce significant quantities of oil, gas, or other minerals, the Exhausted Resource Relinquishment Provision comes into play. Operators must demonstrate the depletion and inability for the well to sustain further operations. 3. Financially Unfeasible Relinquishment Provision: If an exploratory well becomes financially unviable due to various factors, such as market conditions or unforeseen economic circumstances, the Financially Unfeasible Relinquishment Provision may be applicable. Operators must provide detailed financial analyses and justifications to support their decision to relinquish the well. 4. Environmental Compliance Relinquishment Provision: This type of relinquishment provision is specific to cases where an exploratory well poses significant environmental risks or violates environmental regulations. Operators must demonstrate the potential environmental hazards and their inability to mitigate or rectify them, leading to the decision to relinquish the well. The New York Relinquishment Provision — Exploratory Well is an integral component of the state's regulatory framework, ensuring that the exploration and production industry operates responsibly and with minimal environmental impact. By categorizing and defining different types of relinquishment provisions, New York aims to streamline the decision-making process for operators and ensure the safe and efficient abandonment of exploratory wells.
