CASING POINT ELECTION. After an Exploratory Well has been drilled for all Parties to the objective depth, and all authorized logging and testing has been completed, OPERATOR shall immediately notify the PARTIES of OPERATOR'S proposal to either; (a) further log or test the well, (b) complete the well as originally planned, (c) plug-back and complete the well in a shallower zone in ascending order, (d) deepen the well within a previously approved objective zone, in descending order, (e) deepen the well below the deepest approved objective zone or zones, (f) sidetrack the well to a new bottom hole location within the approved objective zone, (g) other operations in the well, or (h) plug and abandon the well. Within forty-eight (48) hours after receipt of OPERATOR'S proposal, the other PARTIES shall respond thereto by either approving it or making a counter-proposal. If a counter-proposal is made, the PARTIES shall have an additional forty-eight (48) hours to respond thereto. If all PARTIES approve a proposal or counter-proposal, OPERATOR shall conduct the operation at the PARTICIPATING PARTIES cost and risk. A proposal to complete, rework or recomplete a well at a particular depth will take precedence over proposal to complete, rework or recomplete the well above such depth, with a deeper proposal for such operations always taking precedence over a shallower proposal. Proposals for such operations at any depth will take precedence over proposals to deepen the well below its originally proposed total depth or to sidetrack the well once it has reached such depth. Proposals of the same type shall be given precedence in the order in which they are made. No action shall be required on a proposal while there is pending a proposal, with precedence being on the same well on which the parties have not acted or on which work has not been completed. If fewer than all, but one (1) or more, Parties having a Working Interest of 25% or more approve a proposal or counter-proposal made under Section 10.4 and agree to bear the cost and risk thereof, Operator shall conduct the same pursuant to Article 12.
Appears in 3 contracts
Samples: Joint Operating Agreement (Ridgewood Energy L Fund LLC), Joint Operating Agreement (Ridgewood Energy K Fund LLC), Joint Operating Agreement (Ridgewood Enengy K Fund LLC)
CASING POINT ELECTION. After an Exploratory Well has been drilled for all Parties to the objective depth, and all authorized logging and testing has been completed, OPERATOR shall immediately notify the PARTIES of OPERATOR'S proposal to either;
(a) further log or test the well,
(b) complete the well as originally planned,
(c) plug-back and complete the well in a shallower zone in ascending order,
(d) deepen the well within a previously approved objective zone, in descending order,
(e) deepen the well below the deepest approved objective zone or zones,
(f) sidetrack the well to a new bottom hole location within the approved objective zone,
(g) other operations in the well, or
(h) plug and abandon the well. Within forty-eight (48) hours after receipt of OPERATOR'S proposal, the other PARTIES shall respond thereto by either approving it or making a counter-proposal. If a counter-proposal is made, the PARTIES shall have an additional forty-eight (48) hours to respond thereto. If all PARTIES approve a proposal or counter-proposal, OPERATOR shall conduct the operation at the PARTICIPATING PARTIES cost and risk. A proposal to complete, rework or recomplete a well at a particular depth will take precedence over proposal to complete, rework or recomplete the well above such depth, with a deeper proposal for such operations always taking precedence over a shallower proposal. Proposals for such operations at any depth will take precedence over proposals to deepen the well below its originally proposed total depth or to sidetrack the well once it has reached such depth. However, upon reaching the AFE total depth as initially proposed, should OPERATOR determine that the well is still in pay, then before any subsequent proposal is made and approved by the PARTIES, OPERATOR shall notify the PARTIES accordingly. At that point should competing proposals to deepen and complete be made, a vote by two or more with combined voting interest of fifty percent (50%) will determine whether deepening or completing the well will take priority. Proposals of the same type shall be given precedence in the order in which they are made. No action shall be required on a proposal while there is pending a proposal, with precedence being on the same well on which the parties have not acted or on which work has not been completed. If fewer than all, but one (1) or more, Parties having a Working Interest of 2540% or more approve a proposal or counter-proposal counterproposal made under Section 10.4 and agree to bear the cost and risk thereof, Operator shall conduct the same pursuant to Article 12.
Appears in 2 contracts
Samples: Joint Operating Agreement (Ridgewood Enengy K Fund LLC), Joint Operating Agreement (Ridgewood Energy K Fund LLC)
CASING POINT ELECTION. After an Exploratory Well has been drilled for all Parties to the objective depth, and all authorized logging and testing has been completed, OPERATOR shall immediately notify the PARTIES of OPERATOR'S proposal to either;
(a) further log or test the well,
(b) complete the well as originally planned,
(c) plug-back and complete the well in a shallower zone in ascending order,
(d) deepen the well within a previously approved objective zone, in descending order,
(e) deepen the well below the deepest approved objective zone or zones,
(f) sidetrack the well to a new bottom hole location within the approved objective zone,
(g) other operations in the well, or
(h) plug and abandon the well. Within forty-eight (48) hours after receipt of OPERATOR'S proposal, the other PARTIES shall respond thereto by either approving it or making a counter-proposal. If a counter-proposal is made, the PARTIES shall have an additional forty-eight (48) hours to respond thereto. If all PARTIES approve a proposal or counter-proposal, OPERATOR shall conduct the operation at the PARTICIPATING PARTIES cost and risk. A proposal to complete, rework or recomplete a well at a particular depth will take precedence over proposal to complete, rework or recomplete the well above such depth, with a deeper proposal for such operations always taking precedence over a shallower proposal. Proposals for such operations at any depth will take precedence over proposals to deepen the well below its originally proposed total depth or to sidetrack the well once it has reached such depthdepth with a proposal to sidetrack taking precedence over a proposal to deepen. Proposals of the same type shall be given precedence in the order in which they are made. No action shall be required on a proposal while there is pending a proposal, with precedence being on the same well on which the parties have not acted or on which work has not been completed. If fewer than all, but one (1) or more, Parties having a Working Interest of 25% or more approve a proposal or counter-proposal made under Section 10.4 and agree to bear the cost and risk thereof, Operator shall conduct the same pursuant to Article 12.been
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