Failure to Contribute Initial Operations Assessments Sample Clauses

Failure to Contribute Initial Operations Assessments. The failure of a Venturer to contribute his proportionate share of an Initial Operations Assessment within seven business days from delivery of a notice by mail, facsimile or overnight delivery (or within 48 hours if the rig that will effect such operations is on location) shall, in the Managing Venturer’s sole and absolute discretion, (i) if approved by a Vote of the Venturers, be deemed a request that his interest in the Joint Venture be abandoned, and he shall be effectively withdrawn as a participant in the Joint Venture, with no further benefits, rights or obligations with respect to the sharing of income, gains and losses with respect to the Prospect Xxxxx; (ii) the Venture may offset against any distributions to which such Venturer would otherwise be entitled an amount equal to 500% of the amount which such Venturer failed to contribute; or (iii) such Venturer’s interest in the Joint Venture may be reduced to reflect the non-payment. Assessments made in regard to costs incident to actions taken to enhance production or in regard to the installation of pumping equipment, pipelines or gas treatment facilities (among other things) are Special Assessments and not Initial Operations Assessments.