Common use of Commercial Discovery Clause in Contracts

Commercial Discovery. (a) The Contractor may, at any time and having regard to paragraph 4.10(b), declare that a Commercial Discovery has been made. (b) The declaration is to be made in such manner, and be accompanied by such supporting data and information, as the Designated Authority requires, including the Contractor's proposal as to that part of the Contract Area to be declared a Development Area. (c) The Designated Authority shall declare those Sub-Blocks which encompass the Field in which the Commercial Discovery has been made plus a reserve margin sufficient to cover the probable extent of the Field, to be a Development Area, but may exclude deeper formations in which no Discovery has been made. The Designated Authority, at any time and from time to time, of its own volition or that of the Contractor, may: (i) add Sub-Blocks then in the Contract Area to; (ii) remove Sub-Blocks from; or (iii) vary by depth within the Contract Area,