Common use of Drilling of Xxxxx Clause in Contracts

Drilling of Xxxxx. (a) Except as otherwise provided in Exhibit “C”, the price for each well shall include all tangible and intangible costs which may be incurred in drilling and completing such well, including without limi-tation, the costs of site preparation and restoration, permits and bonds, roadways, surface damages, power at the site, water, Operator's overhead and profit, rights-of-way, drilling rigs, collection tanks and other equipment necessary or appropriate to dispose of brine, equipment and material, costs of title examination, access rights, logging, cementing, perforating, fracturing, casing, meter (other than utility purchase meters), separator and geological and engineering services but shall not cover the costs and expenses of: (i) services, equipment and any facilities necessary or appropriate for the production and sale or disposal of oil and/or natural gas liquids; and (ii) drilling through, casing and cementing a void in a coal mine or seam with respect to any well. Any such extra costs shall be paid by the parties, in proportion to their respective interests in the well with respect to which such expenses were incurred, based on Exhibit “D” or, if not set forth therein, at Operator's invoice costs for expenses incurred or third party services performed and materials furnished, plus ten percent (10%), which ten percent shall be in lieu of any charge by Operator for its profit or overhead. (b) Operator shall determine the timing of and the order of the drilling of the xxxxx. Any well drilled hereunder shall be drilled to a depth sufficient to thoroughly test the Xxxxxx sand horizons, or to 3,000 feet, except in the case that the operator deems it prudent to drill to a depth of 5,500 feet, or sufficient depth, to test the Xxxxxx Formation. The Operator shall have the right to direct stoppage of work at any time prior to reaching the depth specified herein whenever a natural open flow of gas occurs which is in a sufficient quantity that continued operations are hazardous in the sole opinion of Operator, or whenever the natural open flow is in excess of 5OO Mcf/day. (c) Operator shall have the exclusive right to pay for, own, use and assign, any pipeline and dehydration facilities in connection with the xxxxx being drilled hereunder; provided, however, that sufficient capacity will be maintained for the delivery of gas under this Agreement. (d) Operator shall determine whether or not to run the prod-uction casing for an attempted completion or to plug and abandon the xxxxx drilled hereunder, which determination shall be final and binding on all parties after the well has been drilled to target depth. If any Developer shall request Operator to employ any procedures which cause delay or additional cost, then such Developer shall pay for all such additional costs. (e) If Operator elects not to run production casing for an attempted completion, the well shall be considered to be a dry hole under this Agreement. Operator will plug and abandon the well in the manner as prescribed by regulations of the appropriate governmental agencies and regulatory bodies. Operator shall furnish a plugging report showing the well has been plugged. The charge for plugging and abandoning the well shall be paid by the Developers, and Operator shall refund the portion of the price of such well to the Developers set forth in Exhibit “F”. (f) If election is made by Operator to run production casing, Operator shall so advise the Developers as soon as practical and the same shall be run and cemented according to acceptable field practices for the area, and shall be perforated at points selected by Operator, and the fracturing treatment shall be performed in accordance with customary practices in the area. (g) This Agreement shall not be construed as a guarantee as to the commercial productivity of the xxxxx covered by this Agreement. Operator shall not be liable for or act as a guarantor of services or materials provided by third parties or against any geological faults, geological accidents, or other geological circumstances, which may appear during or subsequent to the completion of any well hereunder which affects the commercial productivity of such well. Any costs and expenses of remedial work shall be considered operating costs under Section 8.

Drilling of Xxxxx. (a) Except as otherwise provided in Exhibit “"C”", the price for each well shall include all tangible and intangible costs which may be incurred in drilling and completing such well, including without limi-tation, the costs of site preparation and restoration, permits and bonds, roadways, surface damages, power at the site, water, Operator's overhead and profit, rights-of-way, drilling rigs, collection tanks and other equipment necessary or appropriate to dispose of brine, equipment and material, costs of title examination, access rights, logging, cementing, perforating, fracturing, casing, meter (other than utility purchase meters), separator and geological and engineering services but shall not cover the costs and expenses of: (i) services, equipment and any facilities necessary or appropriate for the production and sale or disposal of oil and/or natural gas liquids; and (ii) drilling through, casing and cementing a void in a coal mine or seam with respect to any well. ; Any such extra costs shall be paid by the parties, in proportion to their respective interests in the well with respect to which such expenses were incurred, based on Exhibit “"D” " or, if not set forth therein, at Operator's invoice costs for expenses incurred or third party services performed and materials furnished, plus ten percent (10%), which ten percent shall be in lieu of any charge by Operator for its profit or overhead, (Need language here to cover possible surcharges on gasoline, drilling services, cement jobs, etc.) (b) Operator shall determine the timing of and the order of the drilling of the xxxxx. Any well drilled hereunder shall be drilled to a depth sufficient to thoroughly test the Xxxxxx Bradford sand horizons, or to 3,000 feet, except in the case that the operator deems it prudent to drill to a depth of 5,500 feet, or sufficient depth, feet to test the Xxxxxx Elk Formation. The Operator shall have the right to direct stoppage of work at any time prior to reaching the depth specified herein whenever a natural open flow of gas occurs which is in a sufficient quantity that continued operations are hazardous in the sole opinion of Operator, or whenever the natural open flow is in excess of 5OO Mcf/day. (c) Operator shall have the exclusive right to pay for, own, use and assign, any pipeline and dehydration facilities in connection with the xxxxx being drilled hereunder; provided, however, that sufficient capacity will be maintained for the delivery of gas under this Agreement. (d) Operator shall determine whether or not to run the prod-uction casing for an attempted completion or to plug and abandon the xxxxx drilled hereunder, which determination shall be final and binding on all parties after the well has been drilled to target depth. If any Developer shall request Operator to employ any procedures which cause delay or additional cost, then such Developer shall pay for all such additional costs. (e) If Operator elects not to run production casing for an attempted completion, the well shall be considered to be a dry hole under this Agreement. Operator will plug and abandon the well in the manner as prescribed by regulations of the appropriate governmental agencies and regulatory bodies. Operator shall furnish a plugging report showing the well has been plugged. The charge for plugging and abandoning the well shall be paid by the Developers, and Operator shall refund the portion of the price of such well to the Developers set forth in Exhibit “"F”". (f) If election is made by Operator to run production casing, Operator shall so advise the Developers as soon as practical and the same shall be run and cemented according to acceptable field practices for the area, and shall be perforated at points selected by Operator, and the fracturing treatment shall be performed in accordance with customary practices in the area. (g) This Agreement shall not be construed as a guarantee as to the commercial productivity of the xxxxx covered by this Agreement. Operator shall not be liable for or act as a guarantor of services or materials provided by third parties or against any geological faults, geological accidents, or other geological circumstances, which may appear during or subsequent to the completion of any well hereunder which affects the commercial productivity of such well. Any costs and expenses of remedial work shall be considered operating costs under Section 8.

Drilling of Xxxxx. (a) Except as otherwise provided in Exhibit “"C”", the price for each well shall include all tangible and intangible costs which may be incurred in drilling and completing such well, including without limi-tation, the costs of site preparation and restoration, permits and bonds, roadways, surface damages, power at the site, water, Operator's overhead and profit, rights-of-way, drilling rigs, collection tanks and other equipment necessary or appropriate to dispose of brine, equipment and material, costs of title examination, access rights, logging, cementing, perforating, fracturing, casing, meter (other than utility purchase meters), separator and geological and engineering services but shall not cover the costs and expenses of: (i) services, equipment and any facilities necessary or appropriate for the production and sale or disposal of oil and/or natural gas liquids; and (ii) drilling through, casing and cementing a void in a coal mine or seam with respect to any well. ; Any such extra costs shall be paid by the parties, in proportion to their respective interests in the well with respect to which such expenses were incurred, based on Exhibit “"D” " or, if not set forth therein, at Operator's invoice costs for expenses incurred or third party services performed and materials furnished, plus ten percent (10%), which ten percent shall be in lieu of any charge by Operator for its profit or overhead., (b) Operator shall determine the timing of and the order of the drilling of the xxxxx. Any well drilled hereunder shall be drilled to a depth sufficient to thoroughly test the Xxxxxx sand horizons, or to 3,000 feet, except in the case that the operator deems it prudent to drill to a depth of 5,500 feet, or sufficient depth, to test the Xxxxxx Formation. The Operator shall have the right to direct stoppage of work at any time prior to reaching the depth specified herein whenever a natural open flow of gas occurs which is in a sufficient quantity that continued operations are hazardous in the sole opinion of Operator, or whenever the natural open flow is in excess of 5OO Mcf/day. (c) Operator shall have the exclusive right to pay for, own, use and assign, any pipeline and dehydration facilities in connection with the xxxxx being drilled hereunder; provided, however, that sufficient capacity will be maintained for the delivery of gas under this Agreement. (d) Operator shall determine whether or not to run the prod-uction casing for an attempted completion or to plug and abandon the xxxxx drilled hereunder, which determination shall be final and binding on all parties after the well has been drilled to target depth. If any Developer shall request Operator to employ any procedures which cause delay or additional cost, then such Developer shall pay for all such additional costs. (e) If Operator elects not to run production casing for an attempted completion, the well shall be considered to be a dry hole under this Agreement. Operator will plug and abandon the well in the manner as prescribed by regulations of the appropriate governmental agencies and regulatory bodies. Operator shall furnish a plugging report showing the well has been plugged. The charge for plugging and abandoning the well shall be paid by the Developers, and Operator shall refund the portion of the price of such well to the Developers set forth in Exhibit “"F”". (f) If election is made by Operator to run production casing, Operator shall so advise the Developers as soon as practical and the same shall be run and cemented according to acceptable field practices for the area, and shall be perforated at points selected by Operator, and the fracturing treatment shall be performed in accordance with customary practices in the area. (g) This Agreement shall not be construed as a guarantee as to the commercial productivity of the xxxxx covered by this Agreement. Operator shall not be liable for or act as a guarantor of services or materials provided by third parties or against any geological faults, geological accidents, or other geological circumstances, which may appear during or subsequent to the completion of any well hereunder which affects the commercial productivity of such well. Any costs and expenses of remedial work shall be considered operating costs under Section 8.

Drilling of Xxxxx. (a) Except as otherwise provided in Exhibit “"C”", the price for each well shall include all tangible and intangible costs which may be incurred in drilling and completing such well, including without limi-tation, the costs of site preparation and restoration, permits and bonds, roadways, surface damages, power at the site, water, Operator's overhead and profit, rights-of-way, drilling rigs, collection tanks and other equipment necessary or appropriate to dispose of brine, equipment and material, costs of title examination, access rights, logging, cementing, perforating, fracturing, casing, meter (other than utility purchase meters), separator and geological and engineering services but shall not cover the costs and expenses of: (i) services, equipment and any facilities necessary or appropriate for the production and sale or disposal of oil and/or natural gas liquids; and (ii) drilling through, casing and cementing a void in a coal mine or seam with respect to any well. ; Any such extra costs shall be paid by the parties, in proportion to their respective interests in the well with respect to which such expenses were incurred, based on Exhibit “"D” " or, if not set forth therein, at Operator's invoice costs for expenses incurred or third party services performed and materials furnished, plus ten percent (10%), which ten percent shall be in lieu of any charge by Operator for its profit or overhead., (b) Operator shall determine the timing of and the order of the drilling of the xxxxx. Any well drilled hereunder shall be drilled to a depth sufficient to thoroughly test the Xxxxxx ________ sand horizons, or to 3,000 _________ feet, except in the case that the operator deems it prudent to drill to a depth of 5,500 _______ feet, or sufficient depth, to test the Xxxxxx Formation. The Operator shall have the right to direct stoppage of work at any time prior to reaching the depth specified herein whenever a natural open flow of gas occurs which is in a sufficient quantity that continued operations are hazardous in the sole opinion of Operator, or whenever the natural open flow is in excess of 5OO Mcf/day. (c) Operator shall have the exclusive right to pay for, own, use and assign, any pipeline and dehydration facilities in connection with the xxxxx being drilled hereunder; provided, however, that sufficient capacity will be maintained for the delivery of gas under this Agreement. (d) Operator shall determine whether or not to run the prod-uction casing for an attempted completion or to plug and abandon the xxxxx drilled hereunder, which determination shall be final and binding on all parties after the well has been drilled to target depth. If any Developer shall request Operator to employ any procedures which cause delay or additional cost, then such Developer shall pay for all such additional costs. (e) If Operator elects not to run production casing for an attempted completion, the well shall be considered to be a dry hole under this Agreement. Operator will plug and abandon the well in the manner as prescribed by regulations of the appropriate governmental agencies and regulatory bodies. Operator shall furnish a plugging report showing the well has been plugged. The charge for plugging and abandoning the well shall be paid by the Developers, and Operator shall refund the portion of the price of such well to the Developers set forth in Exhibit “"F”". (f) If election is made by Operator to run production casing, Operator shall so advise the Developers as soon as practical and the same shall be run and cemented according to acceptable field practices for the area, and shall be perforated at points selected by Operator, and the fracturing treatment shall be performed in accordance with customary practices in the area. (g) This Agreement shall not be construed as a guarantee as to the commercial productivity of the xxxxx covered by this Agreement. Operator shall not be liable for or act as a guarantor of services or materials provided by third parties or against any geological faults, geological accidents, or other geological circumstances, which may appear during or subsequent to the completion of any well hereunder which affects the commercial productivity of such well. Any costs and expenses of remedial work shall be considered operating costs under Section 8.