Common use of Abandonment of Wxxxx That Have Produced Clause in Contracts

Abandonment of Wxxxx That Have Produced. Any well which has been completed as a producer shall not be plugged and abandoned without the consent of all Consenting Parties in connection with that well. If, within thirty (30) days after receipt of notice of the proposed abandonment of any well, all such Consenting Parties do not agree to the abandonment of such well, those wishing to continue its operation from the interval(s) of the formation(s) then open to production shall tender to each of the other Consenting Parties its proportionate share of the value of the well’s salvable material and equipment, determined in accordance with the provisions of Exhibit “C”, less the estimated cost of salvaging and the estimated cost of plugging and abandoning. Provided, however, any party who receives notice of a proposal to plug and abandon a well shall have the right within forty-eight (48) hours after receipt of the notice to take over the well for additional testing by any method at such party’s sole cost and expense. Any party electing to take a well over for additional testing subsequent to receipt of a notice to plug and abandon such well shall be required to commence such additional testing within thirty (30) days after their election to conduct the same. After such testing, if the party elects to plug and abandon the well, the well shall be returned to the Operator, but the testing party shall be responsible for any excess costs of plugging and abandoning caused by such testing operations. Each abandoning party shall assign the non-abandoning parties, without warranty, express or implied, as to title or as to quantity, or fitness for use of the equipment and material, all of its interest in the well and related equipment, together with its interest in the leasehold estate as to, but only as to, the interval or intervals of the formation or formations then open to production. If the interest of the abandoning party is or includes an oil and gas interest, such party shall execute and deliver to the non-abandoning party or parties an oil and gas lease, limited to the interval or intervals of the formation or formations then open to production, for a term of one (1) year and so long thereafter as oil and/or gas is produced from the interval or intervals of the formation or formations covered thereby, such lease to be in a form mutually agreeable to the parties. The assignments or leases so limited shall encompass the “wellbore” only of the well being abandoned. The payments by, and the assignments or leases to, the assignees shall be in a ratio based upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all assignees. There shall be no readjustment of interests in the remaining portion of the Contract Area. Thereafter, abandoning parties shall have no further responsibility, liability, or interest in the operation of or production from the well in the interval or intervals then open. Upon request, and at the Operator’s election, Operator shall continue to operate the assigned well for the account of the non-abandoning parties at the rates and charges contemplated by this Agreement, plus any additional cost and charges which may arise as the result of the separate ownership of the assigned well. Upon proposed abandonment of the producing interval(s) assigned or leased, the assignor or lessor shall then have the option to repurchase its prior interest in the well (using the same valuation formula) and participate in further operations therein subject to the provisions hereof.

Abandonment of Wxxxx That Have Produced. Any Except for any well in which a Non-Consent operation has been conducted hereunder for which the Consenting Parties have not been fully reimbursed as herein provided, any well which has been completed as a producer shall not be plugged and abandoned without the consent of all Consenting Parties parties. If all parties consent to such abandonment, the well shall be plugged and abandoned in connection accordance with that wellapplicable regulations and at the cost, risk and expense of all the parties hereto. Failure of a party to reply within sixty (60) days of delivery of notice of proposed abandonment shall be deemed an election to consent to the proposal. If, within thirty sixty (3060) days after receipt delivery of notice of the proposed abandonment of any well, all such Consenting Parties parties do not agree to the abandonment of such well, those wishing to continue its operation from the interval(s) of the formation(s) Zone then open to production shall be obligated to take over the well as of the expiration of the applicable notice period and shall indemnify Operator (if Operator is an abandoning party) and the other abandoning parties against liability for any further operations on the well conducted by such parties. Failure of such party or parties to provide proof reasonably satisfactory to Operator of their financial capability to conduct such operations or to take over the well within the required period or thereafter to conduct operations on such well shall entitle Operator to retain or take possession of such well and plug and abandon the well. Parties taking over a well as provided herein shall tender to each of the other Consenting Parties parties its proportionate share of the value of the well’s salvable material and equipment, determined in accordance with the provisions of Exhibit “C”, less the estimated cost of salvaging and the estimated cost of plugging and abandoning. Providedabandoning and restoring the surface; provided, however, any party who receives notice of a proposal to plug and abandon a well shall have that in the right within forty-eight (48) hours after receipt of event the notice to take over the well for additional testing by any method at such party’s sole cost and expense. Any party electing to take a well over for additional testing subsequent to receipt of a notice to plug and abandon such well shall be required to commence such additional testing within thirty (30) days after their election to conduct the same. After such testing, if the party elects to plug and abandon the well, the well shall be returned to the Operator, but the testing party shall be responsible for any excess costs of estimated plugging and abandoning caused by such testing operationsand surface restoration costs and the estimated cost of salvaging are higher than the value of the well’s salvable material and equipment, each of the abandoning parties shall tender to the parties continuing operations their proportionate shares of the estimated excess cost. Each abandoning party shall assign to the non-abandoning parties, without warranty, express or implied, as to title or as to quantity, or fitness for use of the equipment and material, all of its interest in the wellbore of the well and related equipment, together with its interest in the leasehold estate Leasehold insofar and only insofar as to, but only as to, such Leasehold covers the interval or intervals of right to obtain production from that wellbore in the formation or formations Zone then open to production. If the interest of the abandoning party is or includes an oil Oil and gas interestGas Interest, such party shall execute and deliver to the non-abandoning party or parties an oil and gas lease, limited to the interval or intervals of wellbore and the formation or formations Zone then open to production, for a term of one (1) year and so long thereafter as oil Oil and/or gas Gas is produced from the interval or intervals of the formation or formations Zone covered thereby, such lease to be in a on the form mutually agreeable to the partiesattached as Exhibit “B”. The assignments or leases so limited shall encompass the “wellbore” only of Drilling Unit upon which the well being abandonedis located. The payments by, and the assignments or leases to, the assignees shall be in a ratio based upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all assignees. There shall be no readjustment of interests in the remaining portion portions of the Contract Area. Thereafter, abandoning parties shall have no further responsibility, liability, or interest in the operation of or production from the well in the interval or intervals Zone then openopen other than the royalties retained in any lease made under the terms of this Article. Upon request, and at the Operator’s election, Operator shall continue to operate the assigned well for the account of the non-abandoning parties at the rates and charges contemplated by this Agreementagreement, plus any additional cost and charges which may arise as the result of the separate ownership of the assigned well. Upon proposed abandonment of the producing interval(s) Zone assigned or leased, the assignor or lessor shall then have the option to repurchase its prior interest in the well (using the same valuation formula) and participate in further operations therein subject to the provisions hereof.

Abandonment of Wxxxx That Have Produced. Any Except for any well in which a Non-Consent operation has been conducted hereunder for which the Consenting Parties have not been fully reimbursed as herein provided, any well which has been completed as a producer shall not be plugged and abandoned without the consent of all Consenting Parties parties. If all parties consent to such abandonment, the well shall be plugged and abandoned in connection accordance with that wellapplicable regulations and at the cost, risk and expense of all the parties hereto. Failure of a party to reply within sixty (60) days of delivery of notice of proposed abandonment shall be deemed an election to consent to the proposal. If, within thirty sixty (3060) days after receipt delivery of notice of the proposed abandonment of any well, all such Consenting Parties parties do not agree to the abandonment of such well, those wishing to continue its operation from the interval(s) of the formation(s) Zone then open to production shall be obligated to take over the well as of the expiration of the applicable notice period and shall indemnify Operator (if Operator is an abandoning party) and the other abandoning parties against liability for any further operations on the well conducted by such parties. Failure of such party or parties to provide proof reasonably satisfactory to Operator of their financial capability to conduct such operations or to take over the well within the required period or thereafter to conduct operations on such well shall entitle operator to retain or take possession of such well and plug and abandon the well. Parties taking over a well as provided herein shall tender to each of the other Consenting Parties parties its proportionate share of the value of the well’s salvable material and equipment, determined in accordance with the provisions of Exhibit “C”, ,” less the estimated cost of salvaging and the estimated cost of plugging and abandoning. Providedabandoning and restoring the surface; provided, however, any party who receives notice of a proposal to plug and abandon a well shall have that in the right within forty-eight (48) hours after receipt of event the notice to take over the well for additional testing by any method at such party’s sole cost and expense. Any party electing to take a well over for additional testing subsequent to receipt of a notice to plug and abandon such well shall be required to commence such additional testing within thirty (30) days after their election to conduct the same. After such testing, if the party elects to plug and abandon the well, the well shall be returned to the Operator, but the testing party shall be responsible for any excess costs of estimated plugging and abandoning caused by such testing operations. and surface restoration costs and the estimated cost of salvaging are higher than the value of the well's salvable material and equipment, each of the abandoning parties shall tender to the parties continuing operations their proportionate shares of the estimated excess cost Each abandoning party shall assign to the non-abandoning parties, without warranty, express or implied, as to title or as to quantity, or fitness for use of the equipment and material, all of its interest in the wellbore of the well and related equipment, together with its interest in the leasehold estate Leasehold insofar and only insofar as to, but only as to, such Leasehold covers the interval or intervals of right to obtain production from that wellbore in the formation or formations Zone then open to production. If the interest of the abandoning party is or includes an oil and gas interestOil and Gas Interest, such party shall execute and deliver to the non-abandoning party or parties an oil and gas lease, limited to the interval or intervals of wellbore and the formation or formations Zone then open to production, for a term of one (1I) year and so long thereafter as oil Oil and/or gas Gas is produced from the interval or intervals of the formation or formations Zone covered thereby, such lease to be in a on the form mutually agreeable to the parties. attached as Exhibit “B.” The assignments or leases so limited shall encompass the “wellbore” only of Drilling Unit upon which the well being abandonedis located. The payments by, and the assignments or leases to, the assignees shall be in a ratio based upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all assignees. There shall be no readjustment of interests in the remaining portion portions of the Contract Area. Thereafter, abandoning parties shall have no further responsibility, liability, or interest in the operation of or production from the well in the interval or intervals then open. Upon request, and at the Operator’s election, Operator shall continue to operate the assigned well for the account of the non-abandoning parties at the rates and charges contemplated by this Agreement, plus any additional cost and charges which may arise as the result of the separate ownership of the assigned well. Upon proposed abandonment of the producing interval(s) assigned or leased, the assignor or lessor shall then have the option to repurchase its prior interest in the well (using the same valuation formula) and participate in further operations therein subject to the provisions hereof. A. A.P.L. FORM 610 – 1989

Abandonment of Wxxxx That Have Produced. Any Except for any well in which a Non-Consent operation has been conducted hereunder for which the Consenting Parties have not been fully reimbursed as herein provided, any well which has been completed as a producer shall not be plugged and abandoned without the consent of all Consenting Parties parties. If all parties consent to such abandonment, the well shall be plugged and abandoned in connection accordance with that wellapplicable regulations and at the cost, risk and expense of all the parties hereto. Failure of a party to reply within sixty (60) days of delivery of notice of proposed abandonment shall be deemed an election to consent to the proposal. If, within thirty sixty (3060) days after receipt delivery of notice of the proposed abandonment of any well, all such Consenting Parties parties do not agree to the abandonment of such well, those wishing to continue its operation from the interval(s) Zone then open to A. A.P.L. FORM 610 — MODEL FORM OPERATING AGREEMENT — 1989 production shall be obligated to take over the well as of the formation(sexpiration of the applicable notice period and shall indemnify Operator (if Operator is an abandoning party) then open and the other abandoning parties against liability for any further operations on the well conducted by such parties. Failure of such party or parties to production provide proof reasonably satisfactory to Operator of their financial capability to conduct such operations or to take over the well within the required period or thereafter to conduct operations on such well shall entitle Operator to retain or take possession of such well and plug and abandon the well. Parties taking over a well as provided herein shall tender to each of the other Consenting Parties parties its proportionate share of the value of the well’s salvable material and equipment, determined in accordance with the provisions of Exhibit “C”, ,” less the estimated cost of salvaging and the estimated cost of plugging and abandoning. Providedabandoning and restoring the surface; provided, however, any party who receives notice of a proposal to plug and abandon a well shall have that in the right within forty-eight (48) hours after receipt of event the notice to take over the well for additional testing by any method at such party’s sole cost and expense. Any party electing to take a well over for additional testing subsequent to receipt of a notice to plug and abandon such well shall be required to commence such additional testing within thirty (30) days after their election to conduct the same. After such testing, if the party elects to plug and abandon the well, the well shall be returned to the Operator, but the testing party shall be responsible for any excess costs of estimated plugging and abandoning caused by such testing operationsand surface restoration costs and the estimated cost of salvaging are higher than the value of the well’s salvable material and equipment, each of the abandoning parties shall tender to the parties continuing operations their proportionate shares of the estimated excess cost. Each abandoning party shall assign to the non-abandoning parties, without warranty, express or implied, as to title or as to quantity, or fitness for use of the equipment and material, all of its interest in the wellbore of the well and related equipment, together with its interest in the leasehold estate Leasehold insofar and only insofar as to, but only as to, such Leasehold covers the interval or intervals of right to obtain production from that wellbore in the formation or formations Zone then open to production. If the interest of the abandoning party is or includes an oil Oil and gas interestGas Interest, such party shall execute and deliver to the non-abandoning party or parties an oil and gas lease, limited to the interval or intervals of wellbore and the formation or formations Zone then open to production, for a term of one (1) year and so long thereafter as oil Oil and/or gas Gas is produced from the interval or intervals of the formation or formations Zone covered thereby, such lease to be in a on the form mutually agreeable to the parties. attached as Exhibit “B.” The assignments or leases so limited shall encompass the “wellbore” only of Drilling Unit upon which the well being abandonedis located. The payments by, and the assignments or leases to, the assignees shall be in a ratio based upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all assignees. There shall be no readjustment of interests in the remaining portion portions of the Contract Area. Thereafter, abandoning parties shall have no further responsibility, liability, or interest in the operation of or production from the well in the interval or intervals Zone then openopen other than the royalties retained in any lease made under the terms of this Article. Upon request, and at the Operator’s election, Operator shall continue to operate the assigned well for the account of the non-abandoning parties at the rates and charges contemplated by this Agreementagreement, plus any additional cost and charges which may arise as the result of the separate ownership of the assigned well. Upon proposed abandonment of the producing interval(s) Zone assigned or leased, the assignor or lessor shall then have the option to repurchase its prior interest in the well (using the same valuation formula) and participate in further operations therein subject to the provisions hereof.