Common use of Abandonment of Xxxxx Drilled as Joint Operations Clause in Contracts

Abandonment of Xxxxx Drilled as Joint Operations. (A) A decision to plug and abandon any well which has been drilled as a Joint Operation shall require the approval of the Operating Committee. (B) Should any Party fail to reply within the period prescribed in Article 5.12(A)(1) or Article 5.12(A)(2), whichever is applicable, after delivery of notice of the Operator’s proposal to plug and abandon such well, such Party shall be deemed to have consented to the proposed abandonment. (C) If the Operating Committee approves a decision to plug and abandon an Exploration Well or Appraisal Well, any Party voting against such decision may propose, within the time periods allowed by Article 5.13(A), to conduct an alternate Exclusive Operation in the wellbore. If no Exclusive Operation is timely proposed, or if an Exclusive Operation is timely proposed but is not commenced within the applicable time periods under Article 7.2, such well shall be plugged and abandoned. (D) Any well plugged and abandoned under this Agreement shall be plugged and abandoned in accordance with applicable regulations and at the cost, risk and expense of the Parties who participated in the cost of drilling such well. (E) Notwithstanding anything to the contrary in this Article 10.1 or elsewhere in this Agreement: (1) If the Operating Committee approves a decision to plug and abandon a well from which Hydrocarbons have been produced and sold, any Party voting against the decision may propose, within five (5) days after the time specified in Article 5.6 or Article 5.12 has expired, to take over the entire well as an Exclusive Operation. Any Party originally participating in the well shall be entitled lo participate in the operation of the well as an Exclusive Operation by response notice within ten (10) Days after receipt of the notice proposing the Exclusive Operation. The Consenting Parties shall be entitled to continue producing only from the Zone open to production at the time they assumed responsibility for the well and shall not be entitled to drill a substitute well in the event that the well taken over becomes impaired or fails. (2) Each Non-Consenting Party shall be deemed to have relinquished free of cost to the Consenting Parties in proportion to their Participating Interests all of its interest in the wellbore of a produced well and related equipment in accordance with Article 7.4(B). The Consenting Parties shall thereafter bear all cost and liability of plugging and abandoning such well in accordance with applicable regulations, to the extent the Parties are or become obligated to contribute to such costs and liabilities, and shall indemnify the Non-Consenting Parties against all such costs and liabilities. (3) Subject to Article 7.10(G), Operator shall continue to operate a produced well for the account of the Consenting 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 allocation of interest in such well.

Appears in 3 contracts

Samples: Joint Operating Agreement, Joint Operating Agreement (Kosmos Energy Ltd.), Joint Operating Agreement

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Abandonment of Xxxxx Drilled as Joint Operations. (Aa) A decision to plug and abandon any well which has been drilled as a Joint Operation shall require the approval of the Operating CommitteeOperations Management Board. (Bb) Should any Party fail to reply within the period prescribed in Article 5.12(A)(1Clauses 5.12(a)(i) or Article 5.12(A)(25.12(a)(ii), whichever is applicable, after delivery of notice of the Operator’s proposal to plug and abandon such well, such Party shall be deemed to have consented to the proposed abandonment. (Cc) If the Operating Committee Operations Management Board approves a decision to plug and abandon an Exploration Well or an Appraisal Well, any Party voting against such decision may propose, within the time periods allowed by Article 5.13(AClause 5.13(a), to conduct an alternate Exclusive Operation in the wellbore. If no Exclusive Operation is timely proposed, or if an Exclusive Operation is timely proposed but is not commenced within the applicable time periods under Article Clause 7.2, such well shall be plugged and abandoned. (Dd) Any well plugged and abandoned under this Agreement shall be plugged and abandoned in accordance with applicable regulations and at the cost, risk and expense of the Parties who participated in the cost of drilling such well. (Ee) Notwithstanding anything to the contrary in this Article Clause 10.1 or elsewhere in this Agreement: (1i) If if the Operating Committee Operations Management Board approves a decision to plug and abandon a well from which Hydrocarbons have been produced and sold, any Party voting against the decision may propose, within five (5) days Days after the time specified in Article Clauses 5.6 or Article 5.12 has expired, to take over the entire well as an Exclusive Operation. Any Party originally participating in the well shall be entitled lo to participate in the operation of the well as an Exclusive Operation by response notice within ten (10) Days after receipt of the notice proposing the Exclusive Operation. The Consenting Parties shall be entitled to continue producing only from the Zone open to production at the time they assumed responsibility for the well and shall not be entitled to drill a substitute well in the event that the well taken over becomes impaired or of fails.; (2ii) Each each Non-Consenting Party shall be deemed to have relinquished free of cost to the Consenting Parties in proportion to their Participating Interests all of its interest in the wellbore of a produced well and related equipment in accordance with Article 7.4(BClause 7.4(b). The Consenting Parties shall thereafter bear all cost and liability of plugging and abandoning such well in accordance with applicable regulations, to the extent the Parties are or become obligated to contribute to such costs and liabilities, and shall indemnify the Non-Consenting Parties against all such costs and liabilities.; and (3iii) Subject subject to Article 7.10(GClause 7.9(f), Operator shall continue to operate a produced well for the account of the Consenting 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 allocation of interest in such well.

Appears in 3 contracts

Samples: Joint Operating Agreement, Joint Operating Agreement, Joint Operating Agreement (Kosmos Energy Ltd.)

Abandonment of Xxxxx Drilled as Joint Operations. (A) A decision to plug and abandon any Any well which has been drilled as a Joint Operation and which is proposed to be plugged and abandoned shall require not be plugged and abandoned without the approval consent of all Parties, and in the event that the Operating CommitteeCompany has been formed, the consent of EGPC. (B) Should any such Party fail to reply within the period prescribed in Article 5.12(A)(1) or Article 5.12(A)(2), whichever is applicable, after delivery of notice of the Operator’s 's proposal to plug and abandon such well, such Party shall be deemed to have consented to the proposed abandonment. (C) If the Operating Committee approves a decision to plug and abandon an Exploration Well or Appraisal Well, any Party voting against such decision may propose, within the time periods allowed by Article 5.13(A), to conduct an alternate Exclusive Operation in the wellbore. If no Exclusive Operation is timely proposed, or if an Exclusive Operation is timely proposed but is not commenced within all the applicable time periods under Article 7.2Parties consent to abandonment, such well shall be plugged and abandoned. (D) Any well plugged and abandoned under this Agreement shall be plugged and abandoned in accordance with applicable regulations and at the cost, risk and expense of the Parties who participated in or the cost Consenting Parties, as applicable. C) If all Parties do not agree to the abandonment of drilling such well. (E) Notwithstanding anything , those wishing to the contrary in this Article 10.1 or elsewhere in this Agreement: (1) If the Operating Committee approves a decision to plug and abandon a well from which Hydrocarbons have been produced and sold, any Party voting against the decision may propose, within five (5) days after the time specified in Article 5.6 or Article 5.12 has expired, to take continue operations shall assume financial responsibility over the entire well as an Exclusive Operation. Any Party originally participating in the well and shall be entitled lo participate in the operation of the well as deemed to be Consenting Parties conducting an Exclusive Operation by response notice within ten (10) Days after receipt pursuant to Article VII. In the case of a producing well, the notice proposing the Exclusive Operation. The Consenting Parties shall be entitled to continue producing only from the Zone open to production at the time they assumed responsibility for the well and shall not be entitled to drill a substitute well in the event that the well taken over becomes impaired or failswell. (2D) Each Non-Consenting Party shall be deemed to have relinquished free of cost to the Consenting Parties in proportion to their Participating Interests all of its interest in the wellbore of a produced well and related equipment in accordance with Article 7.4(B). The Consenting Parties shall thereafter bear all cost , insofar and liability of plugging and abandoning only insofar as such well interest covers the right to obtain production from that wellbore in accordance with applicable regulations, the Zone then open to the extent the Parties are or become obligated to contribute to such costs and liabilities, and shall indemnify the Non-Consenting Parties against all such costs and liabilitiesproduction. (3E) Subject to Article 7.10(GArticles 6.3 and 7.8(G), Operator shall continue to operate a produced well for the account of the Consenting 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 allocation of interest in such well.

Appears in 2 contracts

Samples: Joint Operating Agreement (Drucker Industries Inc), International Joint Operating Agreement (Transatlantic Petroleum Corp)

Abandonment of Xxxxx Drilled as Joint Operations. (A) A decision to plug and abandon any well which has been drilled as a Joint Operation shall require the approval of the Operating Committee. (B) Should any Party fail to reply within the period prescribed in Article 5.12(A)(1) or Article 5.12(A)(2), whichever is applicable, after delivery of notice of the Operator’s proposal to plug and abandon such well, such Party shall be deemed to have consented to the proposed abandonment. (C) If the Operating Committee approves a decision to plug and abandon an Exploration Well or Appraisal Well, subject to the Laws / Regulations, any Party voting against such decision may propose, propose (within the time periods allowed by Article 5.13(A), ) to conduct an alternate Exclusive Operation in the wellbore. If no Exclusive Operation is timely proposed, or if an Exclusive Operation is timely proposed but is not commenced within the applicable time periods under Article 7.2, such well shall be plugged and abandoned. (D) Any well plugged and abandoned under this Agreement shall be plugged and abandoned in accordance with applicable regulations the Laws / Regulations and at the cost, risk and expense of the Parties who participated in the cost of drilling such well. (E) Notwithstanding anything to the contrary in this Article 10.1 or elsewhere in this Agreement10.1: (1) If the Operating Committee approves a decision to plug and abandon a well from which Hydrocarbons have been produced and sold, subject to the Laws / Regulations, any Party voting against the decision may propose, propose (within five (5) days Days after the time specified in Article 5.6 5.6, Article 5.12(A)(1) or Article 5.12 5.12(A)(2), whichever is applicable, has expired, ) to take over the entire well as an Exclusive Operation. Any Party originally participating in the well shall be entitled lo to participate in the operation of the well as an Exclusive Operation by response notice within ten (10) Days after receipt of the notice proposing the Exclusive Operation. The In such event, the Consenting Parties shall be entitled to continue producing only from the Zone open to production at the time they assumed responsibility for the well and shall not be entitled to drill a substitute well in the event that the well taken over becomes impaired or fails. (2) Each Non-Consenting Party shall be deemed to have relinquished free of cost to the Consenting Parties in proportion to their Participating Interests all of its interest in the wellbore of a produced well and related equipment in accordance with Article 7.4(B). The Consenting Parties shall thereafter bear all cost and liability of plugging and abandoning such well in accordance with applicable regulationsthe Laws / Regulations, to the extent the Parties are or become obligated to contribute to such costs and liabilities, and shall indemnify the Non-Consenting Parties against all such costs and liabilities. (3) Subject to Article 7.10(G7.12(F), Operator shall continue to operate a produced well for the account of the Consenting 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 allocation of interest in such well.

Appears in 2 contracts

Samples: Purchase and Sale Agreement (Hyperdynamics Corp), Operating Agreement (Hyperdynamics Corp)

Abandonment of Xxxxx Drilled as Joint Operations. (A) A decision to plug and abandon any well which has been drilled as a Joint Operation shall require the approval of the Operating Committee. (B) Should any Party fail to reply within the period prescribed in Article 5.12(A)(1) or Article 5.12(A)(2), whichever is applicable, after delivery of notice of the Operator’s proposal to plug and abandon such well, such Party shall be deemed to have consented to the proposed abandonment. (C) If the Operating Committee approves a decision to plug and abandon an Exploration Well or Appraisal Well, any Party voting against such decision may propose, within the time periods allowed by Article 5.13(A), to conduct an alternate Exclusive Operation in the wellbore. If no Exclusive Operation is timely timely, proposed, or if an Exclusive Operation is timely proposed but is not commenced within the applicable time periods under Article 7.2, such well shall be plugged and abandoned. (D) Any well plugged and abandoned under this Agreement shall be plugged and abandoned in accordance with applicable regulations and at the cost, risk and expense of the Parties who participated in the cost of drilling such well. (E) Notwithstanding anything to the contrary in this Article 10.1 or elsewhere in this Agreement: (1) If the Operating Committee approves a decision to plug and abandon a well from which Hydrocarbons have been produced and sold, any Party voting against the decision may propose, within five (5) days after the time specified in Article 5.6 or Article 5.12 has expired, to take over the entire well as an Exclusive Operation. Any Party originally participating in the well shall be entitled lo to participate in the operation of the well as an Exclusive Operation by response notice within ten (10) Days after receipt of the notice proposing the Exclusive Operation. The Consenting Parties shall be entitled to continue producing only from the Zone open to production at the time they assumed responsibility for the well and shall not be entitled to drill a substitute well in the event that the well taken over becomes impaired or fails. (2) Each Non-Consenting Party shall be deemed to have relinquished free of cost to the Consenting Parties in proportion to their Participating Interests all of its interest in the wellbore of a produced well and related equipment in accordance with Article 7.4(B). The Consenting Parties shall thereafter bear all cost and liability of plugging and abandoning such well in accordance with applicable regulations, to the extent the Parties are or become obligated to contribute to such costs and liabilities, and shall indemnify the Non-Consenting Parties against all such costs and liabilities. (3) Subject to Article 7.10(G7.9(G), Operator shall continue to operate a produced well for the account of the Consenting 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 allocation of interest in such well.

Appears in 2 contracts

Samples: Joint Operating Agreement, Joint Operating Agreement (Kosmos Energy Ltd.)

Abandonment of Xxxxx Drilled as Joint Operations. (Aa) A decision to plug and abandon any well which has been that was drilled as a Joint Operation shall require the approval of the Operating Committee. (Bb) Should If any Party fail fails to reply within the period prescribed in Article 5.12(A)(1clause 5.12(a)(i) or Article 5.12(A)(2clause 5.12(a)(iii), whichever is applicableapplies, after delivery of notice of the Operator’s proposal to plug and abandon such well, such Party shall be deemed to have consented to the proposed abandonment. (Cc) If the Operating Committee approves a decision to plug and abandon an Exploration Well or Appraisal Well, subject to the Laws, any Party voting against such decision may propose, propose (within the time periods allowed by Article 5.13(Aclause 5.12(a), ) to conduct an alternate Exclusive Reduced Interest Operation in the wellbore. If no Exclusive Reduced Interest Operation is timely proposed, or if an Exclusive a Reduced Interest Operation is timely proposed but is not commenced within the applicable time periods under Article 7.2clause 10.2(b), such well shall be plugged and abandoned. (Dd) Any well plugged and abandoned under this Agreement shall be plugged and abandoned in accordance with applicable regulations under the Laws and at the cost, cost and risk and expense of the Parties who participated in the cost of drilling such well. (Ee) Notwithstanding anything to the contrary in this Article 10.1 or elsewhere in this Agreementclause 15.2: (1i) If if the Operating Committee approves a decision to plug and abandon a well from which Hydrocarbons have been produced and sold, subject to the Laws, any Party voting against the decision may propose, propose a Proposed New Amending Deed – Joint Operating Agreement (Beetaloo JV) 92 Operation within five (5) days Days after the time specified in Article 5.6 clause 5.6, clause 5.12(a)(i) or Article 5.12 clause 5.12(a)(iii), whichever applies, has expired, to take over the entire well as an Exclusive a Reduced Interest Operation. Any Party originally participating in the well shall be entitled lo to participate in the operation of the well as an Exclusive a Reduced Interest Operation by response notice within ten (10) 10 Days after receipt of the notice proposing the Exclusive Proposed New Operation. The Consenting ; (ii) in such event, the Well Interest Parties shall be entitled to continue producing only from the Zone open to production at the time they assumed responsibility for the well and shall not be entitled to drill conduct a substitute well Reduced Interest Operation in the event that the well taken over becomes impaired or fails.well; (2iii) Each each Non-Consenting Well Interest Party shall be deemed to have relinquished free of cost transferred to the Consenting Well Interest Parties in proportion to their Participating Well Interests all of its interest in the wellbore of a produced well and related equipment in accordance with Article 7.4(B)for consideration of $1.00. The Consenting Well Interest Parties shall thereafter afterwards bear all cost and liability of plugging and abandoning such well under the Laws in accordance with applicable regulationsproportion to their Well Interest, to the extent the Parties are or become obligated obliged to contribute to such costs and liabilities, and the Well Interest Parties shall indemnify the Non-Consenting Well Interest Parties against all such costs and liabilities.; and (3iv) Subject subject to Article 7.10(Gclause 11.6(e), Operator shall continue to operate a produced well for the account of the Consenting Well Interest Parties at the rates and charges contemplated by this Agreement, plus any additional cost and charges which costs that may arise as the result of the separate allocation of interest in such well.

Appears in 1 contract

Samples: Joint Operating Agreement (Tamboran Resources Corp)

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Abandonment of Xxxxx Drilled as Joint Operations. (A) A decision to plug and abandon any well which has been drilled as a Joint Operation shall require the approval of the Operating CommitteeCommittee in accordance with Article 5.9. (B) Should If any Party fail fails to reply within the period prescribed in Article 5.12(A)(1) or Article 5.12(A)(2), whichever is applicableapplies, after delivery of notice of the Operator’s proposal to plug and abandon such well, such Party shall be deemed to have consented to the proposed abandonment. (C) If the Operating Committee approves a decision to plug and abandon an Exploration Well or Appraisal Well, subject to the Laws, any Party voting against such decision may propose, propose (within the time periods allowed by Article 5.13(A), ) to conduct an alternate Exclusive Operation in the wellbore. If no Exclusive Operation is timely proposed, or if an Exclusive Operation is timely proposed but is not commenced within the applicable time periods under Article 7.2, such well shall be plugged and abandoned. (D) Any well plugged and abandoned under this Agreement shall be plugged and abandoned in accordance with applicable regulations the Laws and at the cost, risk and expense of the Parties who participated in the cost of drilling such well; provided that, a Party whose Paying Interest was zero (0) in respect of a particular Exploration and/or Appraisal Well because its obligations were met by the other Parties in respect of Carried Obligations shall have no liability in respect of the cost of plugging and abandoning such Exploration and/or Appraisal Xxxxx (whether or not such xxxxx are plugged and abandoned prior to termination of the Exploration Period) unless following the date of approval by the Minister of a Development Plan for a Commercial Discovery such xxxxx became Joint Property. (E) Notwithstanding anything to the contrary in this Article 10.1 or elsewhere in this Agreement10.2: (1) If the Operating Committee approves a decision to plug and abandon a well from which Hydrocarbons have Petroleum has been produced and sold, subject to the Laws, any Party voting against the decision may propose, propose (within five (5) days Days after the time specified in Article 5.6 5.6, Article 5.12(A)(1) or Article 5.12 5.12(A)(2), whichever is applicable, has expired, ) to take over the entire well as an Exclusive Operation. Any Party originally participating in the well shall be entitled lo to participate in the operation of the well as an Exclusive Operation by response notice within ten (10) Days after receipt of the notice proposing the Exclusive Operation. The In such event, the Consenting Parties shall be entitled to continue producing only from conduct an Exclusive Operation in the Zone open to production at well; provided that the time they assumed responsibility for the well and shall proposed operation may not be entitled to drill a substitute well in the event that the well taken over becomes impaired or failssame Zone from which production was previously obtained nor be in a Zone which is produced by any other Joint Operation xxxxx. (2) Each Non-Consenting Party shall be deemed to have relinquished free of cost to the Consenting Parties in proportion to their Participating Interests all of its interest in the wellbore of a produced well and related equipment in accordance with Article 7.4(B). The Consenting Parties shall thereafter bear all cost and liability of plugging and abandoning such well in accordance with applicable regulationsthe Laws, to the extent the Parties are or become obligated to contribute to such costs and liabilities, and shall indemnify the Non-Consenting Parties against all such costs and liabilities. (3) Subject to Article 7.10(G7.11(F), the Operator shall continue to operate a produced well for the account of the Consenting 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 allocation of interest in such well.

Appears in 1 contract

Samples: Joint Operating Agreement

Abandonment of Xxxxx Drilled as Joint Operations. (A) A decision to plug and abandon any well which has been drilled as a Joint Operation shall require the approval of the Operating CommitteeCommittee in accordance with Article 5.9. (B) Should If any Party fail fails to reply within the period prescribed in Article 5.12(A)(1) or Article 5.12(A)(2), whichever is applicableapplies, after delivery of notice of the Operator’s proposal to plug and abandon such well, such Party shall be deemed to have consented to the proposed abandonment. (C) If the Operating Committee approves a decision to plug and abandon an Exploration Well or Appraisal Well, subject to the Laws, any Party voting against such decision may propose, propose (within the time periods allowed by Article 5.13(A), ) to conduct an alternate Exclusive Operation in the wellbore. If no Exclusive Operation is timely proposed, or if an Exclusive Operation is timely proposed but is not commenced within the applicable time periods under Article 7.2, such well shall be plugged and abandoned. (D) Any well plugged and abandoned under this Agreement shall be plugged and abandoned in accordance with applicable regulations the Laws and at the cost, risk and expense of the Parties who participated in the cost of drilling such well. (E) Notwithstanding anything to the contrary in this Article 10.1 or elsewhere in this Agreement10.2: (1) If the Operating Committee approves a decision to plug and abandon a well from which Hydrocarbons have Petroleum has been produced and sold, subject to the Laws, any Party voting against the decision may propose, propose (within five (5) days Days after the time specified in Article 5.6 5.6, Article 5.12(A) (1) or Article 5.12 5.12(A) (2), whichever is applicable, has expired, ) to take over the entire well as an Exclusive Operation. Any Party originally participating in the well shall be entitled lo to participate in the operation of the well as an Exclusive Operation by response notice within ten (10) Days after receipt of the notice proposing the Exclusive Operation. The In such event, the Consenting Parties shall be entitled to continue producing only from conduct an Exclusive Operation in the Zone open to production at well; provided that the time they assumed responsibility for the well and shall proposed operation may not be entitled to drill a substitute well in the event that the well taken over becomes impaired or failssame Zone from which production was previously obtained nor be in a Zone which is produced by any other Joint Operation xxxxx. (2) Each Non-Consenting Party shall be deemed to have relinquished free of cost to the Consenting Parties in proportion to their Participating Interests all of its interest in the wellbore of a produced well and related equipment in accordance with Article 7.4(B). The Consenting Parties shall thereafter bear all cost and liability of plugging and abandoning such well in accordance with applicable regulationsthe Laws, to the extent the Parties are or become obligated to contribute to such costs and liabilities, and shall indemnify the Non-Consenting Parties against all such costs and liabilities. (3) Subject to Article 7.10(G7.11(F), Operator shall continue to operate a produced well for the account of the Consenting 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 allocation of interest in such well.

Appears in 1 contract

Samples: Joint Operating Agreement

Abandonment of Xxxxx Drilled as Joint Operations. (A) A decision to plug and abandon any Any well which has been drilled as a Joint Operation and which is proposed to be plugged and abandoned shall require not be plugged and abandoned without the approval consent of the Operating Committeeall Parties. (B) Should any such Party fail to reply within the period prescribed in Article 5.12(A)(1) or Article 5.12(A)(2), whichever is applicable, after delivery of notice of the Operator’s 's proposal to plug and abandon such well, such Party shall be deemed to have consented to the proposed abandonment. (C) If the Operating Committee approves a decision to plug and abandon an Exploration Well or Appraisal Well, any Party voting against such decision may propose, within the time periods allowed by Article 5.13(A), to conduct an alternate Exclusive Operation in the wellbore. If no Exclusive Operation is timely proposed, or if an Exclusive Operation is timely proposed but is not commenced within all the applicable time periods under Article 7.2Parties consent to abandonment, such well shall be plugged and abandoned. (D) Any well plugged and abandoned under this Agreement shall be plugged and abandoned in accordance with applicable regulations and at the cost, risk and expense of the Parties who participated in the cost of drilling such well. (EC) Notwithstanding anything If all Parties do not agree to the contrary in this Article 10.1 or elsewhere in this Agreement: (1) If the Operating Committee approves a decision abandonment of such well, those wishing to plug and abandon a well from which Hydrocarbons have been produced and sold, any Party voting against the decision may propose, within five (5) days after the time specified in Article 5.6 or Article 5.12 has expired, to take continue operations shall assume financial responsibility over the entire well as an Exclusive Operation. Any Party originally participating in the well and shall be entitled lo participate in the operation of the well as deemed to be Consenting Parties conducting an Exclusive Operation by response notice within ten (10) Days after receipt pursuant to Article VII. In the case of a producing well, the notice proposing the Exclusive Operation. The Consenting Parties shall be entitled to continue producing only from the Zone open to production at the time they assumed responsibility for the well. (D) Consenting Parties taking over a well as provided above shall tender to each of the Non-Consenting Parties such Non-Consenting Parties' Participating Interest share of the value of the well's salvable material and shall not be entitled to drill a substitute well equipment, determined in accordance with the Accounting Procedure, less the estimated cost of salvaging and the estimated cost of plugging and abandoning as of the date the Consenting Party assumed responsibility for the well; provided, however, that in the event that the well taken over becomes impaired or failsestimated plugging and abandoning 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 continue to be liable pursuant to Article 7.3(B) for their respective Participating Interest shares of the estimated excess cost. (2E) Each Non-Consenting Party shall be deemed to have relinquished free of cost to the Consenting Parties in proportion to their Participating Interests all of its interest in the wellbore of a produced well and related equipment in accordance with Article 7.4(B). The Consenting Parties shall thereafter bear all cost , insofar and liability of plugging and abandoning only insofar as such well interest covers the right to obtain production from that wellbore in accordance with applicable regulations, the Zone then open to the extent the Parties are or become obligated to contribute to such costs and liabilities, and shall indemnify the Non-Consenting Parties against all such costs and liabilitiesproduction. (3F) Subject to Article 7.10(G7.9(G), Operator shall continue to operate a produced well for the account of the Consenting 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 allocation of interest in such well.

Appears in 1 contract

Samples: International Joint Venture Operating Agreement (Abacan Resource Corp)

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