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.
Pennsylvania 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 document that addresses the co-production of hydrocarbons from multiple formations within a single well bore in Pennsylvania. Key Features of a Pennsylvania Commingling Agreement Among Working Owners: 1. Leasehold Ownership Variances: This agreement caters to situations where the ownership of mineral leases varies depending on the depth of the formations. It clarifies the rights and responsibilities of working owners who own leasehold interests in different formations within the same well bore. 2. Co-Production: The agreement allows for the extraction of oil, gas, or other hydrocarbons from multiple formations within the same well bore. It outlines the conditions and procedures for commingling production, ensuring fair allocation and accurate measurement of each working owner's share. 3. Formation Specifics: The agreement identifies the participating formations and provides a detailed description of their characteristics, including their depth, thickness, geologic properties, and estimated hydrocarbon reserves. Each working owner's rights and obligations are determined based on their leasehold ownership in these formations. 4. Allocation Method: The agreement establishes a fair method for allocating production from each formation. It may involve proportional allocation based on the respective leasehold interests or other agreed-upon formulas considering factors such as well test results, historical production data, or engineering evaluations. 5. Reporting and Recording: The agreement outlines the reporting requirements for the working owners, necessitating accurate recording of production volumes, well tests, and other relevant data. These records serve as the basis for distribution of proceeds and help in the resolution of any disputes that may arise. Types of Pennsylvania Commingling Agreement Among Working Owners: 1. Vertical Commingling Agreement: This type of agreement covers situations where multiple formations are vertically stacked within a single well bore. The leasehold ownership varies by depth, and this agreement specifies the details of co-production from these formations. 2. Horizontal Commingling Agreement: This agreement applies to scenarios where horizontal drilling techniques are used to access multiple formations laterally. Each working owner may have different leasehold ownership rights in these formations, which are addressed in the agreement. 3. Marcellus Shale Commingling Agreement: Specifically focusing on the prolific Marcellus Shale formation, this agreement deals with the co-production of hydrocarbons from the Marcellus Shale and potentially other formations present in the same well bore. It caters to the complexities arising from varying leasehold ownership depths within this valuable formation. In conclusion, a Pennsylvania 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 comprehensive legal document that governs the co-production of hydrocarbons from multiple formations within a single well bore. It ensures fair allocation, accurate measurement, and clear responsibilities among working owners with varying leasehold ownership depths.
