DESIGNATION AND CONFIGURATION OF PRODUCTION ACREAGE; RECORDABLE RELEASES. Upon termination of this Lease as to any portion of the Leased Premises (whether by expiration of the Primary Term or cessation of Continuous Drilling Operations, whichever is later), Lessee will present to Lessor for Lessor’s approval a proposed designation of Production Acreage for each well, which must be delivered in writing (electronic mail is acceptable) to Lessor. Each proposed designation of Production Acreage shall identify the well to which it applies and shall be accurately and adequately described (i) by both a survey and by metes and bounds description or other adequate legal description, and (ii) by specification of the depths attributable to it. If Lessee does not present a proposed designation of Production Acreage within thirty (30) days of the partial termination of this Lease, Lessor shall have the right to designate the Production Acreage for each well, which shall be in Lessor’s sole discretion, subject to Section 8.b. and Section 8.c. with respect to the size of such Production Acreage. Lessee must take into consideration the productive limits of the producing interval and the configuration of the Leased Premises, and in all circumstances, Lessee will ensure that the acreage assigned to the Production Acreage will be as close as possible to the form of a square or rectangle. Lessee will make every effort when designating Production Acreage to avoid small, irregularly shaped, irregularly stranded, or unusable portions of the Leased Premises, or portions not contiguous with other released portions. Production Acreage formed around xxxxx producing from different formations or zones may overlap, and will overlap when necessary to comply with the requirements of this Section 8.e. If all or a portion of the Leased Premises is included in a pooled unit, then for purposes of this Section 8.e., all the lands within the pooled unit will be considered a part of the Leased Premises, and the size and configuration of the pooled unit must conform to the requirements of Section 8.b., Section 8.c. and this Section
DESIGNATION AND CONFIGURATION OF PRODUCTION ACREAGE; RECORDABLE RELEASES. Upon termination of this Lease as to any portion of the Leased Premises, Lessee will present to Lessor for Lessor’s approval a proposed designation of Production Acreage for each well, which must be delivered in writing (electronic mail is acceptable) to Lessor along with a preliminary diagram of the proposed Production Acreage and the designated depths to be released. Lessee must take into consideration the productive limits of the producing interval and the configuration of the Leased Premises, and in all circumstances, Xxxxxx will ensure that the acreage assigned to the Production Acreage will be as close as possible to the form of a square or rectangle. Lessee will make every effort when designating Production Acreage to avoid small, irregularly shaped, irregularly stranded, or unusable portions of the Leased Premises, or portions not contiguous with other released portions. Production Acreage formed around xxxxx producing from different zones may overlap, and will overlap when necessary to comply with the requirements of this Section 8.e. If all or a portion of the Leased Premises is included in a pooled unit, then for purposes of this Section 8.e., all the lands within the pooled unit will be considered a part of the Leased Premises, and the size and configuration of the pooled unit must conform to the requirements of this Section 8.e.
