Common use of Cost of Drilling and Completion Clause in Contracts

Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows: 1. The Cost of the Prospect, as defined; and 2. For intangible well Costs: a. For each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by the "intangible drilling and completion cost" in the following table, plus the actual extra completion cost of zones completed in excess of the cost of the first zone and actual additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; or b. For each well which the partnership elects not to complete, an amount equal to the "intangible diy hole cost" in the following table, plus the additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; and 3. The tangible Costs of drilling and completing tire Partnership ▇▇▇▇▇ and of gathering pipelines necessary to connect the well to tire nearest appropriate sales point or delivery point. To tire extent that a Partnership acquires less than 100% of a Prospect, its Drilling and Completion Costs of that Prospect will proportionately decrease. Footage Based Rate ▇▇▇▇▇▇▇▇▇▇ Field Colorado Cretaceous Codell 6,500 - 7,800' $57 per foot $19 per foot Wattenberg Field Colorado Cretaceous J Sandstone 7,000 - 8,000' $68 per foot $22 per foot Piceance Basin Colorado Cretaceous Mesaverde 7,000 - 10,000' $135 per foot $76 per foot Sand Wash Basin Colorado Cretaceous Territory Sands 8,000 - 12,000' $135 per foot $76 per foot * The depth used for determination well charges will be the deepest penetration by the drilling bit. In the event the foregoing rates exceed competitive rates available from other non-affiliated persons in the area engaged in the business of rendering or providing comparable services or equipment, the foregoing rates will adjust to an amount equal to that competitive rate.

Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows: 1. The Cost of the Prospect, as defined; and 2. For intangible well Costs: a. For each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by the "intangible drilling and completion cost" in the following table, plus the actual extra completion cost of zones completed in excess of the cost of the first zone and actual additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing Fishing of drilling tools; or b. For each well which the partnership elects not to complete, an amount equal to the "intangible diy dry hole cost" in the following table, plus the additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; and 3. The tangible Costs of drilling and completing tire the Partnership ▇▇▇▇▇ and of gathering pipelines necessary to connect the well to tire the nearest appropriate sales point or delivery point. To tire the extent that a Partnership acquires less than 100% of a Prospect, its Drilling and Completion Costs of that Prospect will proportionately decrease. Footage Based Rate ▇▇▇▇▇▇▇▇▇▇ Wattenberg Field Colorado Cretaceous Codell 6,500 - 7,8006,500' -7, 800' $57 60 per foot $19 20 per foot Wattenberg Field Colorado Cretaceous J Sandstone 7,000 7,000' - 8,000' $68 72 per foot $22 23 per foot Piceance Basin Colorado Cretaceous Mesaverde 7,000 7,000' - 10,000' $135 150 per foot $76 85 per foot Sand Wash Basin Colorado Cretaceous Territory and Tertiary Sands 8,000 8000' - 12,000' $135 150 per foot $76 85 per foot Red Desert Basin Wyoming Cretaceous and Tertiary Sands 8,000 to 12,000 Ft. $150 per foot. $85 per foot. * The depth used for determination well charges will be the deepest penetration by the drilling bit. In the event the foregoing rates exceed competitive rates available from other non-affiliated persons in the area engaged in the business of rendering or providing comparable services or equipment, the foregoing rates will adjust to an amount equal to that competitive rate.. In the event the foregoing rates exceed competitive rates available from other persons in the area engaged in the business of rendering comparable services or equipment, the foregoing rates will be adjusted to an amount equal to that competitive rate, but not less than the cost of providing such services or equipment,

Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows: 1. The Cost of the Prospect, as defined; and 2. For intangible well Costs: a. For each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by the "intangible drilling and completion cost" in the following table, plus the actual extra completion cost of zones completed in excess of the cost of the first zone and actual additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking tracking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; or b. For each well which the partnership elects not to complete, an amount equal to the "intangible diy dry hole cost" in the following table, plus the additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; and 3. The tangible Costs of drilling and completing tire the Partnership ▇▇▇▇▇ and of gathering pipelines necessary to connect the well to tire the nearest appropriate sales point or delivery point. To tire the extent that a Partnership acquires less than 100% of a Prospect, its Drilling and Completion Costs of that Prospect will proportionately decrease. Footage Based Rate Intangible Drilling Target Approximate and Completion Intangible Dry Location Formation Well Depth Cost* Hole Cost* ▇▇▇▇▇▇▇▇▇▇ Field Colorado Cretaceous Codell 6,500 - 6,500- 7,800' ’ $57 per foot $19 per foot Colorado Wattenberg Field Colorado Cretaceous J Sandstone 7,000 - 8,000' ’ $68 per foot $22 per foot Colorado Sandstone Piceance Basin Colorado Cretaceous Mesaverde 7,000 - 10,000' ’ $135 per foot $76 per foot Colorado Mesaverde Sand Wash Basin Colorado Cretaceous Territory Sands 8,000 - – 12,000' ’ $135 per foot $76 per foot Colorado Territory Sands * The depth used for determination well charges will be the deepest penetration by the drilling bit. In the event the foregoing rates exceed competitive rates available from other non-affiliated persons in the area engaged in the business of rendering or providing comparable services or equipment, the foregoing rates will adjust to an amount equal to that competitive rate.

Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows: 1. The Cost of the Prospect, as defined; and 2. For intangible well Costs: a. For each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by the "intangible drilling and completion cost" in the following table, plus the actual extra completion cost of zones completed in excess of the cost of the first zone and actual additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; or b. For each well which the partnership elects not to complete, an amount equal to the "intangible diy dry hole cost" in the following table, plus the additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; and 3. The tangible Costs of drilling and completing tire the Partnership ▇▇▇▇▇ and of gathering pipelines necessary to connect the well to tire the nearest appropriate sales point or delivery point. To tire the extent that a Partnership acquires less than 100% of a Prospect, its Drilling and Completion Costs of that Prospect will proportionately decrease. Footage Based Rate ▇▇▇▇▇▇▇▇▇▇ Location Target Formation Approximate Well Depth Intangible Drilling and Completion Cost* Intangible Dry Hole Cost* Wattenberg Field Colorado Cretaceous Codell 6,500 - 7,800' $57 per foot $19 per foot Wattenberg Field Colorado Cretaceous J Sandstone 7,000 - 8,000' $68 per foot $22 per foot Piceance Basin Colorado Cretaceous Mesaverde 7,000 - 10,000' $135 per foot $76 per foot Sand Wash Basin Colorado Cretaceous Territory Sands 8,000 - 12,000-10,000' $135 per foot $76 per foot * The depth used for determination well charges will be the deepest penetration by the drilling bit. In the event the foregoing rates exceed competitive rates available from other non-affiliated persons in the area engaged in the business of rendering or providing comparable services or equipment, the foregoing rates will adjust to an amount equal to that competitive rate. In the event the foregoing rates exceed competitive rates available from other persons in the area engaged in the business of rendering comparable services or equipment, the foregoing rates will be adjusted to an amount equal to that competitive rate, but not less than the cost of providing such services or equipment.

Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows: 1. The Cost of the Prospect, as defined; and 2. For intangible well Costs: a. For each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by the "intangible drilling and completion cost" in the following table, plus the actual extra completion cost of zones completed in excess of the cost of the first zone and actual additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; or b. For each well which the partnership elects not to complete, an amount equal to the "intangible diy dry hole cost" in the following table, plus the additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; and 3. The tangible Costs of drilling and completing tire the Partnership ▇▇▇▇▇ and of gathering pipelines necessary to connect the well to tire the nearest appropriate sales point or delivery point. To tire the extent that a Partnership acquires less than 100% of a Prospect, its Drilling and Completion Costs of that Prospect will proportionately decrease. Footage Based Rate ▇▇▇▇▇▇▇▇▇▇ Wattenberg Field Colorado Cretaceous Codell 6,500 6,500' - 7,800' $57 60 per foot $19 20 per foot Wattenberg Field Colorado Cretaceous J Sandstone 7,000 7,000' - 8,000' $68 72 per foot $22 23 per foot Piceance Basin Colorado Cretaceous Mesaverde 7,000 - 7,000'- 10,000' $135 150 per foot $76 85 per foot Sand Wash Basin Colorado Cretaceous Territory and Tertiary Sands 8,000 - 8000'- 12,000' $135 150 per foot $76 85 per foot Red Desert Basin Wyoming Cretaceous and Tertiary Sands 8,000 to 12,000 Ft. $150 per foot. $85 per foot. * The depth used for determination well charges will be the deepest penetration by the drilling bit. In the event the foregoing rates exceed competitive rates available from other non-affiliated persons in the area engaged in the business of rendering or providing comparable services or equipment, the foregoing rates will adjust to an amount equal to that competitive rate. In the event the foregoing rates exceed competitive rates available from other persons in the area engaged in the business of rendering comparable services or equipment, the foregoing rates will be adjusted to an amount equal to that competitive rate, but not less than the cost of providing such services or equipment.

Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows: 1. The Cost of the Prospect, as defined; and 2. For intangible well Costs: a. For each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by the "intangible drilling and completion cost" in the following table, plus the actual extra completion cost of zones completed in excess of the cost of the first zone and actual additional costs incurred in the event that an intermediate or third string siring of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; or b. For each well which the partnership elects not to complete, an amount equal to the "intangible diy dry hole cost" in the following table, plus the additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; and 3. The tangible Costs of drilling and completing tire the Partnership ▇▇▇▇▇ and of gathering pipelines necessary to connect the well to tire the nearest appropriate sales point or delivery point. To tire the extent that a Partnership acquires less than 100% of a Prospect, its Drilling and Completion Costs of that Prospect will proportionately decrease. Footage Based Rate ▇▇▇▇▇▇▇▇▇▇ Location Target Formation Approximate Well Depth Intangible Drilling and Completion Cost* Intangible Dry Hole Cost* Wattenberg Field Colorado Cretaceous Codell Codcll 6,500 - 7,800' $57 S57 per foot $19 I9 per foot Wattenberg Field Colorado Cretaceous J Sandstone 7,000 - 8,000' $68 per foot $22 per foot Piceance Pieeancc Basin Colorado Cretaceous Mesaverde 7,000 - 10,000' $135 per foot $76 per foot Sand Wash Basin Colorado Cretaceous Territory Sands 8,000 - 12,000' $135 I35 per foot $76 per foot * The depth used for determination well charges will be the deepest penetration by the drilling bit. In the event the foregoing rates exceed competitive rates available from other non-affiliated persons in the area engaged in the business of rendering or providing comparable services or equipment, the foregoing rates will adjust to an amount equal to that competitive rate.