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Simple English definitions for legal terms

contribution agreement

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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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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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