Common use of CASING POINT ELECTION Clause in Contracts

CASING POINT ELECTION. Upon reaching Casing Point in any well drilled under the provisions of this Agreement (whether commenced as an Exploratory or Development Operation), the Operator shall immediately notify the other Participating Parties in writing and delivered by personal messenger, or by fax, its recommendations as to further operations thereon. Each Participating Party, within forty-eight (48) hours after receipt of such notice and all available logs and test results, shall advise the Operator and the other Participating Parties by telephone with written confirmation sent within twenty-four (24) hours, or by fax, or in writing whether it accepts Operator's recommendation or makes additional recommendations as to further operations with respect to such well. If additional recommendations are made, the Participating Parties shall have an additional twenty-four (24) hours to respond. If all Participating Parties elect to abandon the well at that point, it shall be plugged and abandoned at their joint cost and expense. Any Party may request in writing up to forty-eight (48) hours of additional time beyond the herein specified time in order to make an election; however, all costs associated to such standby rig time shall be at the expense of the Party or Parties requesting such additional time. If less than all, but one (1) or more Participating Parties owning twenty-five percent (25%) or more in interest in the well elect to conduct a specific operation, other than plugging and abandoning the well, the Parties so electing shall conduct such operation as a Non-Consent Operation under the provisions of Article 13. If at any time there is more than one operation proposed in connection with any Well subject to this Agreement, and in the event no one proposed operation receives the approval of one (1) or more Participating Parties owning fifty percent (50%) or more in interest in the well, then unless all Participating Parties agree on the sequence of such operations, such operations shall be proposed and conducted (with no minimum party's percentage approval necessary) in the following order of priority: (a) proposals to do additional testing, coring or logging. (b) proposals to attempt completions in the objective zone, in ascending order. (c) proposals to plug back and attempt completions, in ascending order. (d) proposals to sidetrack to original objective depth. (e) proposals to deepen the Well, in descending order. (f) proposals to sidetrack the Well to a new objective. (g) proposals to perform other operations. (h) proposals to temporarily plug and abandon Well. If the Operation is other than to plug and abandon the Well, such further Operation shall be conducted as a Non-Consent Operation under the provision of Article 13, and if the well is subsequently abandoned as a dry hole, then the Non-Participating Party as to such further Operation shall bear its proportionate part of what would otherwise have been the cost of plugging and abandoning the Well at the initial objective depth.

CASING POINT ELECTION. Upon reaching Casing Point in any well drilled under the provisions of this Agreement (whether commenced a) At such time as an Exploratory or Development Operation)Well been drilled to the objective depth asset forth in the notice, and has been logged and tested and copies of the logs and results furnished to each Participating Party, but before any production pipe has been set, Operator shall immediately notify the other Participating Parties in writing and delivered by personal messengertelephone or telecopy, or by fax, its recommendations as setting forth Operator's recommendation with respect to further operations thereonoperations. Each Participating PartyParty shall, within forty-eight (48) hours after receipt of such notice and all available logs and test resultsnotice, shall advise the notify Operator and the other Participating Parties by telephone with written confirmation sent within twenty-four (24promptly confirmed in writing) hours, or by fax, or in writing telecopy whether it accepts Operator's recommendation or makes make additional recommendations as to further operations with respect to such well. If additional recommendations are made, the Participating Parties shall have an additional twenty-four (24) hours to respond. If all Participating Parties elect to abandon the well at that point, it shall be plugged and abandoned at their joint cost and expense. Any Party party may request in writing up to forty-eight (48) hours of additional time beyond the herein specified time time, in order to make an election; however, all costs associated to such standby rig time shall be at the expense of the Party or Parties requesting such additional time. If less than all, but one The extension of additional time shall not exceed a forty-eight (148) or more hours period. b) Any recommendation concurred to by a majority of Participating Parties owning twenty-five percent (25%) or more in interest in the well elect to conduct a specific operation, Interests shall take precedence over any other than plugging and abandoning the well, the Parties so electing shall conduct such operation as a Non-Consent Operation under the provisions of Article 13proposal. If at any time there is more than one operation proposed in connection with any Well subject to this Agreement, and in In the event no one proposed operation recommendation receives the approval of one (1) or more Participating Parties owning fifty percent (50%) or more in interest in the wellsuch majority support, then unless all Participating Parties agree on the sequence of such operations, such operations recommendation to be followed shall be proposed and conducted (with no minimum party's percentage approval necessary) in the following order of prioritydetermined as follows: (a1) proposals to do additional testing, coring or logging. (b2) proposals to attempt completions in at the initial objective zone, in ascending orderdepth. (c3) proposals to plug back and attempt completions, completions in ascending order. (d) proposals to sidetrack to original objective depth. (e4) proposals to deepen the Well, in descending orderwell. (f5) proposals to sidetrack the Well well to a new objectiveanother bottom hole location no deeper than the stratigraphic equivalent of the initial objective depth. (g6) proposals to perform other operations. (h7) proposals to temporarily plug and abandon Well. If the Operation is other than well. 8) proposals to plug and abandon the Well, such further Operation shall be conducted as a Non-Consent Operation under the provision of Article 13, and if the well is subsequently abandoned as a dry hole, then the Non-Participating Party as to such further Operation shall bear its proportionate part of what would otherwise have been the cost of plugging and abandoning the Well at the initial objective depthwell.