Drilling and Setting Surface Casing Sample Clauses

Drilling and Setting Surface Casing. As to any well that is drilled prior to November 15, 2010 to a depth to set surface casing on State Leases for the purpose of receiving a one year extension to the term of such lease, Participant agrees to participate in all costs to drill and set surface casing and all costs to plug each well with a 50% working interest. SECI will provide Participant with an informational AFE showing the estimated costs through the setting of surface casing. Participant will pay such AFE costs for each well on an at-cost basis no later than two (2) business days following the actual spud date of the well. It is understood that SECI and Participant may be required to pay 100% of the cost to drill and set surface casing on some xxxxx in order to obtain a one-year extension on State Leases even though the Parties may not own 100% of the spacing unit. SECI will use its best efforts to recoup payment from a third party at any time for the setting of surface casing and if payment is received, SECI shall credit Participant with 50% of the funds received by such third party.
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Related to Drilling and Setting Surface Casing

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