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.
Puerto Rico 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 agreement that governs the joint operations and ownership rights of multiple parties involved in oil and gas production in Puerto Rico. This agreement is specifically designed to address situations where leasehold ownership varies concerning the depth of the well. Key terms and keywords related to this topic include: 1. Puerto Rico: Refers to the jurisdiction where the agreement applies, in this case, Puerto Rico. 2. Commingling Agreement: A legal document that allows parties to combine the production from different formations into a single stream. 3. Working Owners: Individuals or companies involved in the active exploration and production activities. 4. Production from Different Formations: The extraction of oil and gas from multiple underground reservoirs or formations. 5. Same Well Bore: The vertical or slant hole drilled from the surface to access the underground reservoirs. 6. Leasehold Ownership: The rights and interests held by different parties over specific portions of land for oil and gas exploration and production. 7. Varies As to Depth: Indicates that the ownership rights differ depending on the specific depth or vertical zone of the well. Different types of Puerto Rico Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth may exist based on the specific geological and legal considerations in Puerto Rico. These variations could include: 1. Depths-based Ownership Agreement: The agreement stipulates that ownership rights change depending on the depth of the well, ensuring that different parties have control over specific portions of the subsurface. 2. Formation-specific Ownership Agreement: This agreement focuses on ownership rights linked to specific underground formations, allowing parties to have control over production from their designated formations. 3. Percentage-based Ownership Agreement: Ownership rights are determined based on percentages, allowing parties to share production and revenues proportionally according to their stake in the well. 4. Joint Operations Agreement: This type of agreement outlines the responsibilities, costs, and operational procedures related to conducting joint operations, ensuring effective coordination and collaboration among the working owners. It's important to note that the specific terms and variations of a Puerto Rico Commingling Agreement Among Working Owners As to Production from Different Formations Out of the Same Well Bore, Where Leasehold Ownership Varies As to Depth will depend on the individual circumstances and negotiations of the parties involved.
