Common use of Block relinquishment Clause in Contracts

Block relinquishment. 1. The contract shall contain provisions for the progressive relinquishment of blocks from the contract area. 2. In calculating the relinquishment requirements, the blocks in a discovery area shall not be counted as part of the original number of blocks in the contract area. 3. In the event that no discovery area has been declared in the contract area before the end of an initial period specified in the contract, the contract operator shall either relinquish all remaining blocks in the contract area and the contract shall be terminated, or the contract operator shall exercise the option provided in the contract to extend the term of the contract.

Block relinquishment. 1. The contract shall contain provisions for the progressive relinquishment of blocks from the contract area. 2. In calculating the relinquishment requirements, the blocks in a discovery area shall not be counted as part of the original number of blocks in the contract area. 3. In the event that no discovery area has been declared in the contract area before the end of an initial period specified in the contract, the contract operator shall either relinquish all remaining blocks in the contract area and the contract shall be terminated, or the contract operator shall exercise the option provided in the contract to extend the term of the contract.