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Simple English definitions for legal terms

dry-hole agreement

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A quick definition of dry-hole agreement:

A dry-hole agreement is a contract in the oil and gas industry where one party agrees to give money or property to another party in exchange for geological or drilling information if the well drilled turns out to be unproductive. This agreement helps to reduce the risk and cost of drilling operations for the party receiving the support, while the contributing party gets valuable information from the tests conducted.

A more thorough explanation:

A dry-hole agreement is a contract in the oil and gas industry where one party agrees to provide financial support to another party in exchange for geological or drilling information if the well drilled turns out to be unproductive. This agreement is also known as a support agreement.

Company A wants to drill a well on a lease it holds, but it is a risky venture and could result in a dry hole. Company B agrees to provide financial support to Company A in exchange for access to the geological or drilling information if the well turns out to be unproductive. This way, Company B can learn from the experience and use the information to improve its own drilling operations in the future.

This example illustrates how a dry-hole agreement can benefit both parties. Company A receives financial support to lessen the risk of drilling operations, while Company B gains valuable information that can be used to improve its own operations.

dry hole | dry-hole clause

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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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