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 Wyoming Relinquishment Provision — Exploratory Well is a crucial regulation in the oil and gas industry in Wyoming, United States. This provision outlines the requirements and guidelines for operators regarding the relinquishment of a well site after conducting exploratory activities. Exploratory wells are drilled in areas where the presence of oil or gas reserves is uncertain. The Wyoming Relinquishment Provision aims to ensure responsible and efficient use of land while encouraging exploration for potential resources. Operators must adhere to these regulations to avoid unnecessary environmental impact and adequately manage their operations. The Wyoming Relinquishment Provision specifies various types of relinquishment requirements based on the outcome of the exploratory activities. These types are: 1. Successful Exploration: In cases where the exploratory well finds commercially viable oil or gas reserves, operators are required to submit a comprehensive development plan to the Wyoming Oil and Gas Conservation Commission (WOG CC) within a specified timeframe. This plan must outline the operator's intent to produce the reserves and utilize the area efficiently. If the plan is approved, the operator can proceed with full-fledged production operations, subject to additional regulations. 2. Non-commercial Discovery: If the exploratory well discovers oil or gas reserves that are not economically feasible to develop, the operator may choose to submit an application to retain a limited area surrounding the well as a "held-by-production" unit. The application must demonstrate the potential for future economic viability and adherence to strict conservation practices. The WOG CC evaluates such applications on a case-by-case basis, considering factors like technologies, market conditions, and environmental impact. 3. No Discovery: When an exploratory well does not encounter any oil or gas reserves, operators are required to fully abandon the well site in accordance with state-mandated procedures. This typically involves plugging the well and restoring the land to its original condition to ensure minimal environmental impact. Operators engaging in exploratory activities must carefully follow the Wyoming Relinquishment Provision to avoid penalties and maintain responsible operations. Compliance with these regulations fosters sustainable energy development, protects the environment, and ensures the efficient use of Wyoming's natural resources. Key Keywords: Wyoming, Relinquishment Provision, Exploratory Well, oil and gas industry, operators, environmental impact, land use, development plan, reserves, Wyoming Oil and Gas Conservation Commission, successful exploration, non-commercial discovery, no discovery, economically feasible, held-by-production unit, abandonment, plugging well, sustainable energy development, natural resources.
