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LSDefine

Simple English definitions for legal terms

contribution agreement

Read a random definition: post meridiem

A quick definition of contribution agreement:

A contribution agreement is a contract between people or companies in the oil and gas industry. It is an agreement to work together to explore for oil and gas. One party agrees to give money or property to another party if they will drill a well on their land and share information from tests. The party giving the money gets valuable information, and the party receiving the money gets help with the cost and risk of drilling. It is also called a support agreement, and it helps both parties work together to find oil and gas.

A more thorough explanation:

A contribution agreement is a contract between two or more parties in the oil and gas industry. The purpose of this agreement is to promote exploratory operations by agreeing to contribute money or property to another party if they drill a well on leases that they hold and provide the contributing party with information from tests conducted.

For example, if Company A holds leases for oil and gas exploration but lacks the funds to drill a well, they may enter into a contribution agreement with Company B. Company B agrees to provide the necessary funds for drilling the well, and in return, Company A provides Company B with information from tests conducted on the well.

Contribution agreements are beneficial for both parties. For the contributing party, it is a purchase of geological or technological information. For the party receiving the support, the contribution lessens the cost or the risk of drilling operations.

Other types of agreements in the oil and gas industry include dry-hole agreements, bottom-hole agreements, and acreage-contribution agreements.

contributio lucri et damni | contribution bar

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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