This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the standard lease form.
Washington Continuous Development: Continuous Development in Washington refers to the practice of drilling and producing oil and gas wells in a manner that maximizes the recovery of resources while minimizing surface disturbances. It is a regulatory requirement where operators are obligated to continuously drill and develop wells within a designated area to efficiently exploit the hydrocarbon reserves. In Washington, there are two main types of Continuous Development: 1. Surface Commingling: Surface commingling allows operators to produce oil and gas from multiple wells located within a designated Surface Commingling Area (SCA). Seas are established to reduce surface impacts and facilitate efficient production. Operators can commingle production from different wells into a single pipeline, contributing to the cost-effective development of reservoirs. 2. Down hole Commingling: Down hole commingling involves the simultaneous production of oil and gas from multiple formations within a single well bore. This technique enables operators to optimize the development of reservoirs with different zones of varying pressures and characteristics, increasing overall well productivity and extraction efficiency. Retained Acreage: Retained Acreage typically refers to the specific area of an oil and gas lease that an operator is entitled to retain for future development or exploration activities. In Washington, retained acreage regulations aim to prevent the holding of unproductive leases or parts of leases by operators without proper development plans. This ensures that valuable resources are efficiently utilized for the benefit of both the state and the operator. Operators in Washington are required to comply with retained acreage provisions, which typically stipulate specific performance-based criteria for retaining acreage. These criteria include the drilling of wells, well spacing, production levels, or other substantial activities within a specified timeframe. Failure to meet these criteria may result in the forfeiture of acreage and its subsequent availability for lease by other operators. Depth Limitations: Depth Limitations in Washington pertain to guidelines and restrictions on the drilling and development of wells based on their target reservoir formations' depth. Such limitations help ensure the safe and effective extraction of hydrocarbon resources while preventing potential damage to the environment or freshwater aquifers. Washington may impose depth limitations based on various factors, including geological formations, hydro geological considerations, and well construction standards. By setting depth limitations, regulators ensure adequate protection of underground water sources, mitigate the risk of contamination, and support sustainable exploration and production practices. Different types of depth limitations may exist in Washington, depending on the specific geological and hydrological characteristics of different areas. These limitations may include different depths for vertical wells and horizontal wells or may vary based on the specific formations or hydrocarbon targets being exploited. Operators must adhere to these depth limitations to maintain compliance with state regulations.
