COSTS OF DRILLING AND COMPLETING INITIAL TEST XXXXX Sample Clauses

COSTS OF DRILLING AND COMPLETING INITIAL TEST XXXXX. 5.1 Participant shall pay One Hundred Percent (100%) of all costs of drilling the first two xxxxx drilled on the Contract Acreage along with 100% of all costs of logging or testing the xxxxx. If either of the first two test xxxxx is deemed a dry hole, Participant shall pay One Hundred Percent (100%) of all costs of plugging and abandoning such well(s) and restoration of the surface upon which the well(s) reached its authorized depth and completion of all tests deemed necessary by the Operator. 5.2 If Participant elects to complete either or both of the first two xxxxx drilled on the Contract Acreage, Participant shall pay One Hundred Percent (100%) of all completion costs through the tanks along with any costs associated to hook up the well(s) to pipeline for the well(s) to be capable of producing into a commercial pipeline for sale. If Participant does not wish to participate in an attempted completion of a well, Participant shall so notify Pioneer within Twenty-Four (24) hours (excluding Saturday, Sunday and legal holidays) after reaching Casing Point and all electric logs have been received, at which time the provisions of Article VI of the Operating Agreement shall govern such completion attempt. 5.3 After the first two xxxxx are drilled and if productive are hooked-up to a pipeline and capable of producing oil and gas in commercial quantities, Participant shall pay 85% of all costs of operating the first two xxxxx and Pioneer shall pay 15% of the operation costs of such xxxxx as reflected in their working interest ownership in such xxxxx.