Obligatory Well
Understanding this form
The Obligatory Well form is a provision included in an Operating Agreement that addresses the assignment of rights concerning an obligatory well. This form specifies the assignment procedures required when operations are necessary to maintain a lease under the agreement. It ensures that any party not consenting to operations can assign their rights to those who do consent, preventing the lease from expiring. This form differs from standard lease agreements as it specifically focuses on non-consenting parties and the necessary actions to uphold leasing rights.
Form components explained
- Definition of proposed operations to maintain a lease.
- Assignment of rights from non-consenting to consenting parties.
- Conditions under which the assignment occurs, including timelines and responsibilities.
- Exemption from the penalties described in Article VI of the Operating Agreement.
- Specifications for sharing assigned interests among consenting parties.
Common use cases
This form should be used in situations where a lease covered by an Operating Agreement is at risk of expiring unless operations are conducted. It is particularly relevant when some parties do not consent to ongoing operations but need to assign their rights to consenters who are willing to proceed, thus ensuring the lease remains valid and operational.
Who can use this document
- Property owners involved in an Operating Agreement.
- Parties holding non-consenting rights in oil and gas leases.
- Consenting parties responsible for maintaining lease operations.
- Legal professionals advising clients on lease agreements.
Completing this form step by step
- Identify the parties involved, including all consenting and non-consenting parties.
- Specify the details of the lease affected by the assignment.
- State the proposed operations required to maintain the lease.
- Detail the rights assigned from the non-consenting party, ensuring clarity on scope.
- Gather necessary signatures from all parties to finalize the assignment.
Notarization guidance
Notarization is not commonly needed for this form. However, certain documents or local rules may make it necessary. Our notarization service, powered by Notarize, allows you to finalize it securely online anytime, day or night.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Failing to clearly define proposed operations.
- Inadequate identification of all parties involved in the assignment.
- Incorrectly outlining the sharing proportions among consenting parties.
- Not providing adequate notice before operations commence.
Benefits of using this form online
- Easy access to legal form templates created by licensed attorneys.
- Quick download options allow immediate use and customization.
- Editable formats enable users to tailor the form to their specific situation.
- Reliable source ensures all forms comply with current legal standards.
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FAQ
Definitions of nonobligatory. adjective. not required by rule or law. synonyms: nonmandatory optional. possible but not necessary; left to personal choice.
Adjective. required as a matter of obligation; mandatory: A reply is desirable but not obligatory. incumbent or compulsory (usually followed by on or upon): duties obligatory on all. imposing moral or legal obligation; binding: an obligatory promise.
As adjectives the difference between obligatory and mandatory. is that obligatory is imposing obligation, morally or legally; binding while mandatory is obligatory; required or commanded by authority.
Compulsory (Required; obligatory; mandatory), mandatory (Obligatory; required or commanded by authority), and obligatory (Imposing obligation, morally or legally; binding) have related and similar meanings.On the other hand, the word 'compulsory' is generally used in the sense of 'essential'.
Required by law or a set of rules. Examples of Obligatory in a sentence. 1. As part of my obligatory court sentence, I must complete sixty hours of community service. d83ddd09
1 : binding in law or conscience The ordinance made it obligatory that homeowners clear the snow from the sidewalks. 2 : relating to or enforcing an obligation a writ obligatory.
