Common use of Excluded Areas Clause in Contracts

Excluded Areas. McMoRan and Participant agree that the following areas ("Excluded Areas") shall not be subject to the terms of this Agreement unless any such area, or portion thereof, has been recommended for inclusion herein by McMoRan in writing and Participant has concurred in writing in that recommendation: (a) Any Leasehold Interests or prospect lying outside the Program Area; (b) Any Leasehold Interests or Prospect which at the time of acquisition contains proven reserves unless (i) the then proven reserves do not constitute a material consideration in the acquisition, and (ii) the primary objective of the acquisition is to explore for oil and gas other than the then proven reserves; (c) Those areas identified on attached Exhibit III; and (d) Any Leasehold Interests or prospect acquired through merger, acquisition, corporate reorganization or consolidation with or purchase of substantially all of the assets of an individual, a corporation or a partnership, provided that the primary purpose of such merger, acquisition, reorganization, consolidation or purchase is not to acquire a specific Prospect or Leasehold Interests which otherwise would be subject to this Agreement; provided, however, if in such an acquisition McMoRan acquires an inventory of exploratory prospects not associated with any proven production acquired in such acquisition, McMoRan shall meet with Participant and, in good faith, attempt to have the exploratory prospects transferred to the Exploration Program.

Excluded Areas. McMoRan and Participant agree that the following areas ("Excluded Areas") shall not be subject to the terms of this Agreement unless any such area, or portion thereof, has been recommended for inclusion herein by McMoRan in writing and Participant has concurred in writing in that recommendation: (a) Any Leasehold Interests Interest or prospect lying outside the Program Area; (b) Any Leasehold Interests Interest or Prospect which at the time of acquisition contains proven reserves unless (i) the then proven reserves do not constitute a material consideration in the acquisition, and (ii) the primary objective of the acquisition is to explore for oil and gas other than the then proven reserves; (c) Those areas identified on attached Exhibit III; and (d) Any Leasehold Interests Interest or prospect acquired through merger, acquisition, corporate reorganization or consolidation with or purchase of substantially all of the assets of an individual, a corporation or a partnership, provided that the primary purpose of such merger, acquisition, reorganization, consolidation or purchase is not to acquire a specific Prospect or Leasehold Interests Interest which otherwise would be subject to this Agreement; provided, however, if in such an acquisition McMoRan acquires an inventory of exploratory prospects not associated with any proven production acquired in such acquisition, McMoRan shall meet with Participant and, in good faith, attempt to have the exploratory prospects transferred to the Exploration Program.