Common use of Area of Mutual Interest Clause in Contracts

Area of Mutual Interest. In the event of Closing, thereafter the ----------------------- parties agree that in the event either party or an affiliate of either party (the "Acquiring Party") shall acquire any oil and gas interests, whether producing or nonproducing, farmouts or other similar contracts which affect or pertain to lands and minerals, located within Huerfano County, Colorado (the "Interests"), it shall notify the other party (the "Nonacquiring Party") of such acquisition. At the time of giving the notice, the Acquiring Party shall provide access to copies of all instruments of acquisition, including without limitation, copies of leases, abstracts, agreements, title memos, assignments, subleases, farmouts and other contracts affecting the Interests in possession of the Acquiring Party. For thirty days (30) days after receipt of the notice of acquisition, Nonacquiring Party shall have the right to acquire its Proportionate Interest (as defined below) in the acquisition on the same terms and conditions on which the Acquiring Party has acquired or has the right to acquire such Interest by notifying the Acquiring Party of its desire to share in the acquisition, and paying its Proportionate Share of the cost of acquisition, or in the case of a farmout or other similar agreement requiring certain performance such as drilling of a test well, agreeing to be liable for its Proportionate Share of the cost of any performance required. For purposes of this Section, the term Proportionate share shall mean: a) when it pertains to leasehold working interests, ninety percent (90%) in the case of PGP and ten percent (10%) in the case of Infinity; and b) when it pertains to mineral interests and overriding royalty interests, fifty percent (50%) in the case of PGP and fifty percent (50%) in the case of Infinity. Any mineral interests in Huerfano County acquired by either party shall be subject to POP's right to acquire an oil and gas lease thereon, which lease shall reserve to the mineral owners a royalty interest of 1/8th of production. Notwithstanding anything to the contrary in this Section 8.4, the Coltex Overrides shall not be subject to the terms of this Section 8.4.

Area of Mutual Interest. (a) There shall be established for the purposes of this Agreement an "Area of Mutual Interest" for each Prospect which shall include all the Lands within such Prospect together with an area of ten miles in distance around such Lands. (b) For the purposes of this Clause the term "Acquiring Shares" shall mean the interests earned, or to be earned, of the parties as such relate to the applicable Prospect. (c) In the event of Closing, thereafter the ----------------------- parties agree that in the event either party hereto acquires, subsequent to the date hereof and prior to December 31, 1999, an interest in Petroleum Substances in a block or an affiliate parcel of either lands, fifty (50%) percent or more by surface area of which lies within the Area of Mutual Interest, such acquisition shall be subject to the following terms and provisions: (i) the party acquiring the interest (hereinafter referred as the "Acquiring Partyacquiring party") shall acquire any oil and gas interestsshall, whether producing or nonproducingwithin ten (10) days of acquiring the interest, farmouts or other similar contracts which affect or pertain give notice in writing to lands and minerals, located within Huerfano County, Colorado (the "Interests"), it shall notify the other party (the "Nonacquiring Partyacquisition notice") setting out the nature of such acquisition. At the time of giving the noticeinterest acquired, the Acquiring Party price paid therefor, together with the obligations assumed or to be assumed in connection therewith. The other party shall provide access to copies of all instruments of acquisitionhave the right, including without limitation, copies of leases, abstracts, agreements, title memos, assignments, subleases, farmouts and other contracts affecting the Interests in possession of the Acquiring Party. For thirty days within ten (3010) days after receipt, or the receipt deemed by it pursuant to Article XIII hereof, of the notice of acquisitionsuch acquisition notice, Nonacquiring Party shall have the right to acquire its Proportionate Interest Acquiring Share of such acquisition by so advising the acquiring party whereupon the lands so acquired shall be governed by the terms of the Operating Agreement; (as defined belowii) in where a party does not advise the acquisition on the same terms and conditions on which the Acquiring Party has acquired or has the right to acquire such Interest by notifying the Acquiring Party acquiring party of its desire to share participate in the acquisitionacquisition pursuant to the above provision, and paying its Proportionate Share it shall be deemed to have no interest in participating in the acquisitions. (d) If, pursuant to a contractual obligation existing as of the cost date hereof, Frontier is required to offer to a third party an interest in lands acquired by it within the Area of acquisitionMutual Interest, or in the case provisions of a farmout or other similar agreement requiring certain performance such as drilling of a test well, agreeing this Clause shall be deemed to be liable for its Proportionate Share of the cost of any performance required. For purposes of this Section, the term Proportionate share shall mean: a) when it pertains to leasehold working interests, ninety percent (90%) in the case of PGP and ten percent (10%) in the case of Infinity; and b) when it pertains to mineral interests and overriding royalty interests, fifty percent (50%) in the case of PGP and fifty percent (50%) in the case of Infinity. Any mineral interests in Huerfano County acquired by either party shall be subject to POP's right to acquire an oil and gas lease thereon, which lease shall reserve modified to the mineral owners a royalty interest of 1/8th of production. Notwithstanding anything extent necessary to the contrary in this Section 8.4, the Coltex Overrides shall not be subject give effect to the terms of this Section 8.4such contractual obligation.

Area of Mutual Interest. In 6.1 At the event time a Prospective Prospect is recommended by Cymraec, Cymraec and the Operator shall define and identify the areal extent of Closingany Prospect (and Cymraec shall define and identify the areal extent of any Prospective Prospect that does not become a Prospect) as the surface realization of the most likely extent of the commercially productive portion of the reservoir comprising such Prospect (or Prospective Prospect) but, thereafter to the ----------------------- parties agree that in the event either party extent reasonably practicable, by governmental sections or an affiliate of either party lease boundaries (the "Acquiring PartyProspect Area"). The Parties hereby designate an area of mutual interest ("AMI") shall acquire encompassing each Prospect Area, together with all lands located within a one-mile radius or "halo" of the boundaries of the Prospect Area. Any interest taken by a Party or an Affiliate, as that term is defined in Section 7.4 of this Agreement, during the period commencing on the date that the Party has received notification that the Prospect Area for a Prospect or Prospective Prospect has been identified by the Operator and/or Cymraec and ending March 31, 2008 (the "Restricted Period") in any oil and gas interestslease, whether producing pooling, communitization or nonproducingunitization agreement or order, farmouts option, operating agreement, farm-in, royalty, or any other similar contracts agreement or arrangement which affect creates or pertain effects an interest in or right to obtain or receive hydrocarbons underlying or produced from any of the lands and mineralswithin the AMI or the proceeds attributable to the sale of those hydrocarbons or which results in the acquisition of a contractual right to acquire such an interest, located within Huerfano County, Colorado shall be offered to the other Parties (other than Channel) in accordance with the terms of this Article VI ("InterestsAMI Dedicated Interest"). It is agreed and understood among the Parties that an AMI Dedicated Interest includes only those oil, it shall notify gas and mineral interests and rights covering lands within the other party (AMI which were acquired or obtained by a Party or an Affiliate during the "Nonacquiring Party") of such acquisitionRestricted Period. At It is also agreed and understood among the time of giving the noticeParties that, as respects Prime, the Acquiring Restricted Period shall end upon the earlier of the effective date of Prime's exercise of its termination rights under this Agreement or Prime's no longer being a fully participating Party under the terms of this Agreement; provided, however, the Restricted Period shall provide access not end with respect to copies any AMI identified on or before the effective date of that termination until two years after its identification or as provided for in any applicable operating agreement created hereunder for which Prime is a Party. 6.2 Any Party or an Affiliate which acquires an AMI Dedicated Interest during the Restricted Period prior to the making of a Prospect Proposal for the Prospect included in the AMI, shall deliver an "AMI Acquisition Notice," as hereafter defined, covering that AMI Dedicated Interest to all instruments Parties (other than Channel) within fifteen (15) days after the later of (i) fifteen (15) days after the acquisition of the AMI Dedicated Interest or (ii) the date of the identification of that Prospect as a Prospect. Within thirty (30) days after its receipt of the AMI Acquisition Notice, the Operator shall have the right (on behalf of the Parties, in accordance with this Agreement), to elect, in writing, to acquire all or some portion of that AMI Dedicated Interest. Any Party or an Affiliate which acquires an AMI Dedicated Interest after a Prospect Proposal has been made shall deliver to each other Party (other than Channel) an AMI Acquisition Notice within fifteen (15) days after the acquisition of the AMI Dedicated Interest. Such notice shall be in writing and shall set forth the terms of the acquisition, including without limitationthe consideration paid, copies and any other obligations assumed in connection with the acquisition ("AMI Acquisition Notice"). 6.3 Each assignment or transfer of leasesan AMI Dedicated Interest shall be subject to all burdens in effect when the AMI Dedicated Interest was acquired by the transferring Party, abstracts, agreements, title memos, assignments, subleases, farmouts and other contracts affecting the Interests than any burden created in possession favor of the Acquiring acquiring Party or any Affiliate of the acquiring Party. For Each non-acquiring Party (other than Channel) shall then have the right, within thirty days (30) days after of receipt of the notice such AMI Acquisition Notice, to elect, in writing, to receive an assignment of acquisition, Nonacquiring Party shall have the right to acquire its Proportionate Interest share (as defined below) in the acquisition on the same terms and conditions on which the Acquiring Party has acquired or has the right to acquire such Interest by notifying the Acquiring Party of its desire Fortune 25%; as to share in the acquisition, and paying its Proportionate Share of the cost of acquisition, or in the case of a farmout or other similar agreement requiring certain performance such Prime 25%; as drilling of a test well, agreeing to be liable for its Proportionate Share of the cost of any performance required. For purposes of this Section, the term Proportionate share shall mean: a) when it pertains to leasehold working interests, ninety percent (90%) in the case of PGP and ten percent (10%) in the case of Infinity; and b) when it pertains to mineral interests and overriding royalty interests, fifty percent (all Seismic Partners 50%) (pursuant to each Seismic Partner's Prospect Working Interest election) of such acquired interest and all obligations associated therewith. Any such acceptance by a non-acquiring Party shall be accompanied by such Party's share of the consideration actually paid by the acquiring Party or the Affiliate of that Party. Timely notice and payment shall entitle the non-acquiring Party to an immediate assignment of its share of such interest with covenants of special warranty. Failure to provide notice of an intention to acquire and to tender payment as provided herein within such thirty (30) day period shall constitute 6.4 It is understood that Prime, Fortune and the Seismic Partners are engaged in the case business of PGP acquiring, drilling, exploiting, developing and fifty percent (50%) in the case of Infinity. Any mineral interests in Huerfano County acquired by either party shall be subject to POP's right to acquire an operating oil and gas lease thereonproperties on their own behalf, which lease and nothing contained in this Agreement shall reserve preclude them from carrying on or engaging in that business or any other business for their own account outside of any AMI or within an AMI to the mineral owners a royalty interest of 1/8th of production. Notwithstanding anything to the contrary in this Section 8.4, the Coltex Overrides shall not be subject to extent permitted by the terms of this Section 8.4Agreement or any pre-existing applicable Operating Agreement (e.g., the acquisition of an interest in lands within an AMI prior to or after the Restricted Period).

Area of Mutual Interest. In the event of Closing, thereafter the ----------------------- parties PGP and CEPI agree that in the event either ----------------------- party or an affiliate of either party (the "Acquiring Party") shall acquire any oil and gas interests, whether producing or nonproducingnon-producing, farmouts or other similar contracts which affect or pertain to lands and minerals, located within Huerfano County, Colorado the area described on Exhibit "F" hereto (the "InterestsMineral Interest"), it shall notify the other party (the "Nonacquiring Non-Acquiring Party") of such acquisition. At the time of giving the notice, the Acquiring Party The notice shall provide access to copies include a copy of all instruments of acquisition, including without limitation, copies of leases, abstracts, agreements, title memos, assignments, subleases, farmouts and other contracts affecting the Interests in possession Mineral Interest. The Acquiring Party shall also enclose an itemized statement of the actual cost and expenses incurred by the Acquiring PartyParty in acquiring such Mineral Interest, excluding, however, costs and expenses of its own personnel ("acquisition costs"). For thirty days (30) days after receipt of the notice of acquisition, Nonacquiring Non-Acquiring Party shall have the right to acquire its Proportionate Interest (as defined below) proportionate interest in the acquisition on the same terms and conditions on which the Acquiring Party has acquired or has the right to acquire such Interest acquisition, by notifying the Acquiring Party party of its desire to share in the acquisition, and paying to the Acquiring Party its Proportionate Share proportionate share of the cost of acquisition, or in the case of a farmout or other similar agreement requiring certain performance such as drilling of a test well, agreeing to be liable for its Proportionate Share proportionate share of the cost of any performance required. If the Mineral Interest covers lands both within and outside of the area of mutual interest, the Non-Acquiring Party's option to acquire an interest therein shall extend only to those lands within the area of mutual interest. For purposes of this Sectionsection, the term Proportionate share "affiliate" shall mean: a) when , with respect to each party hereto, an individual or entity that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with such party. With respect to PGP, it pertains shall include, without limitation, POCI and Petroglyph Energy, Inc. With respect to leasehold working interestsCEPI, ninety percent (90%) in the case of PGP and ten percent (10%) in the case of Infinity; and b) when however, it pertains to mineral interests and overriding royalty interests, fifty percent (50%) in the case of PGP and fifty percent (50%) in the case of Infinity. Any mineral interests in Huerfano County acquired by either party shall be subject to POP's right to acquire an oil and gas lease thereon, which lease shall reserve to the mineral owners a royalty interest of 1/8th of production. Notwithstanding anything to the contrary in this Section 8.4, the Coltex Overrides shall not be subject to the terms of this Section 8.4include any affiliate that is a public utility.

Area of Mutual Interest. In The Parties hereby establish and create an Area of Mutual Interest (referred to as the event “DJ Basin Greenhorn AMI”) consisting of Closingthe following described lands located in Xxxxxx and Weld Counties, thereafter Colorado: The term of the ----------------------- parties agree that DJ Basin Greenhorn AMI shall coincide with the Term of this Agreement as set forth in Section 2. At any time during the event either Term of this Agreement, any party to this Agreement shall have the right to (a) acquire one or an affiliate of either party (the "Acquiring Party") shall acquire any more oil and gas interestsleases covering lands in the DJ Basin Greenhorn AMI, whether producing (b) acquire an option, by farmout agreement or nonproducingotherwise, farmouts to acquire an interest in one or other similar contracts which affect more oil and gas leases covering lands in the DJ Basin Greenhorn AMI; or pertain (c) acquire an interest in the royalty or mineral estate underlying lands in the DJ Basin Greenhorn AMI. Any lease, option, royalty or mineral interest obtained shall be referred to lands and minerals, located within Huerfano County, Colorado as an "Acquisition". Within thirty (30) days after an Acquisition is made (the "Interests"Acquisition of a state or federal lease acquired at auction is made when the lease is issued), it the party so acquiring shall notify all other parties to this Agreement of the Acquisition in writing (“Notice of Acquisition”). The Notice of Acquisition shall contain sufficient information to apprise all non-acquiring parties of the acreage affected by the Acquisition, the costs thereof, the terms and burdens thereon, and shall be accompanied by a copy of the lease, option contract or mineral/royalty deed. Any acquisition of an interest within the DJ Basin Greenhorn AMI by an affiliate, subsidiary, or a party related to either Party shall be deemed to be an Acquisition by Vecta or Synergy, and the interest in the Acquisition being offered pursuant to the provisions of the Agreement shall not bear any additional costs or burdens other party (the "Nonacquiring Party") of such acquisition. At than those created at the time of giving the noticeoriginal lease or other contract covering lands within the DJ Basin Greenhorn AMI. Any acquisition of any interest within the DJ Basin Greenhorn AMI being offered pursuant to the provisions of the Agreement shall be extended to the other Party (or Parties) at actual cost, and no such interest being assigned hereunder shall bear any additional direct or indirect costs or burdens. Each non-acquiring party shall have thirty (30) days from receipt of the Notice of Acquisition within which to notify the acquiring party of its election to participate or decline participation in the Acquisition. Failure to timely render an election to participate shall constitute an election not to participate in the Acquisition. If a well is actually drilling in the DJ Basin Greenhorn AMI, or on lands pooled, unitized or communitized therewith, at the time the Acquisition is made, the Acquiring period for the election shall be reduced to seventy two (72) hours from receipt of the Notice of Acquisition. Each party electing to participate in the Acquisition shall be entitled to participate in the Acquisition to the extent of its interest. As to leases acquired in the DJ Basin Greenhorn AMI, whether by purchase or by farmout, Vecta (and any partners secured by Vecta) shall have the right to participate in an Acquisition to the extent of an 65.00% interest and Synergy shall have the right to participate in an Acquisition to the extent of its 35.00% interest. All costs of the Acquisition, including, but not limited to, lease bonuses, broker fees, recording fees, costs of abstracts and title memoranda, costs of title examination and other related costs, shall be borne by the various Parties electing to participate to the extent of their participation in the Acquisition. Each Party shall provide access to copies of all instruments of acquisition, including without limitation, copies of leases, abstracts, agreements, title memos, assignments, subleases, farmouts and other contracts affecting reimburse the Interests in possession acquiring Party for its share of the Acquiring Partyacquisition costs within thirty (30) days of receipt of a duly particularized invoice. For Failure of any Party to timely reimburse the acquiring Party for the invoiced amount shall be deemed to be an election by such Party not to participate in the Acquisition, notwithstanding its prior stated intent with respect to participation in the Acquisition. The interest in the Acquisition previously allocated to such Party shall then be offered by the acquiring Party to all other Parties who elected to participate in the Acquisition on a pro-rata basis; any interest not assumed by a non-acquiring Party shall be assumed by the participating Parties. Within thirty days (30) days after receipt from all participating Parties of the notice of acquisitionacquisition costs, Nonacquiring the acquiring Party shall have execute and deliver an appropriate assignment of the right interests so acquired to acquire its Proportionate Interest (all other participating Parties. If any Acquisition applies to lands which fall partly within and partly outside the DJ Basin Greenhorn AMI, only the portion of the Acquisition covering lands within the DJ Basin Greenhorn AMI shall be made available to all non-acquiring Parties, and a party must elect to participate only as defined below) to the portion of the lands affected by the Acquisition which fall within the DJ Basin Greenhorn AMI. If less than all Parties to this Agreement elect to participate in an Acquisition, all interests in the acquisition on DJ Basin Greenhorn AMI lands subject to the same terms and conditions on which Acquisition shall be excluded from the Acquiring Party has acquired or has the right to acquire such Interest by notifying the Acquiring Party of its desire to share in the acquisition, and paying its Proportionate Share provisions of the cost of acquisitionAgreement, or in the case of a farmout or other similar agreement requiring certain performance such as drilling of a test well, agreeing to be liable for its Proportionate Share of the cost of any performance required. For purposes of this Section, the term Proportionate share shall mean: a) when it pertains to leasehold working interests, ninety percent (90%) in the case of PGP and ten percent (10%) in the case of Infinity; and b) when it pertains to mineral interests and overriding royalty interests, fifty percent (50%) in the case of PGP and fifty percent (50%) in the case of Infinity. Any mineral interests in Huerfano County acquired by either party but shall be subject to POP's right to acquire an oil and gas lease thereon, which lease shall reserve to the mineral owners a royalty interest of 1/8th of production. Notwithstanding anything to the contrary in this Section 8.4, the Coltex Overrides shall not be made expressly subject to the terms and conditions of a separate Operating Agreement essentially identical to the form attached hereto as Exhibit "G" with the Parties participating in such acquisition as parties to such Operating Agreements. Notwithstanding the other provisions of this Section 8.415, the DJ Basin Greenhorn AMI shall also then automatically terminate as to the whole section or sections under which the properties comprising the Acquisition are located. Further, the DJ Basin Greenhorn AMI shall also be amended from time to time during the Term of the Agreement to the extent that any sale, transfer, or assignment of a lease or leases set forth in the attached Exhibits “A”, “B”, “C”, “D” or “E” to a third party resulting in the relinquishment of all joint interests in a township or townships within the DJ Basin Greenhorn AMI shall result in the elimination of such township or townships from the DJ Basin Greenhorn AMI as of the effective date of the sale, transfer, or assignment of the leasehold interests. Vecta and Synergy acknowledge that the overriding royalty interest referenced in Section 8 shall apply to any and all extensions or renewals of the Vecta Greenhorn Project Leases, the Vecta Wattenberg Extension Area Leases, or the Synergy Greenhorn Project Leases as to all or any part of the lands set forth in the attached Exhibits “A”, “B” and “C”.