9:02
Irvine is being snobby and wont start any review until end of Nov.
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LSDefine
Simple English definitions for legal terms
acreage-contribution agreement
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A quick definition of acreage-contribution agreement:
An acreage-contribution agreement is a contract in the oil and gas industry where one party agrees to give leases or interests in leases to another party who drills a test well in a specific area. In exchange for drilling or geological information, the party who promises to grant leases will receive support from the party who drills the test well. This agreement helps to reduce the cost or risk of drilling operations for the party receiving the support, while the contributing party gains valuable geological or technological information.
A more thorough explanation:
An acreage-contribution agreement is a type of support agreement in the oil and gas industry. It involves one party promising to grant leases or interests in leases in the area of a test well to the party who drills the test well. In exchange, the drilling party provides drilling or geological information if the test well is drilled to a certain depth.
For example, Company A may agree to contribute money or property to Company B if Company B will drill a well on leases that Company A holds. If Company B drills the well to the agreed-upon depth, they will provide Company A with information from the tests conducted. This agreement lessens the cost or risk of drilling operations for Company B, while Company A gains valuable geological or technological information.
Another example could be a group of investors agreeing to contribute funds to a drilling company in exchange for a share of the leases or interests in the area of the test well.
Overall, an acreage-contribution agreement is a way for parties in the oil and gas industry to work together to promote exploratory operations and share the risks and rewards of drilling.