Common use of Farmout Agreements Clause in Contracts

Farmout Agreements. During the Program Term McMoRan shall have the right to enter into farmout agreements with unrelated third parties on such terms as it deems appropriate respecting Leasehold Interests or portions thereof which are not anticipated to be drilled or committed to be drilled by the Exploration Program during the Program Term; provided, however, McMoRan shall keep Participant advised as to any such farmout proposals or plans and shall honor the request of Participant that its interest in such Leasehold Interests or Prospect not be farmed out if Participant advises McMoRan within ten (10) days, or forty-eight (48) hours if a drilling rig is on location with stand-by rig charges accumulating, of McMoRan's notice of intention to farmout that it will participate as to its ownership interest in the drilling of the anticipated farmout well. McMoRan shall not farmout any of Participant's Interest in a Prospect on which the Program has a producing well without the prior consent of Participant.

Farmout Agreements. During the Program Term McMoRan shall have the right to enter into farmout agreements with unrelated third parties on such terms as it deems appropriate respecting Leasehold Interests or portions thereof which are not anticipated to be drilled or committed to be drilled by the Exploration Program during the Program Term; provided, however, McMoRan shall keep Participant advised as to any such farmout proposals or plans and shall honor the request of Participant that its interest in such Leasehold Interests Interest or Prospect not be farmed out if Participant advises McMoRan within ten (10) days, or forty-eight (48) hours if a drilling rig is on location with stand-by rig charges accumulating, of McMoRan's notice of intention to farmout that it will participate as to its ownership interest in the drilling of the anticipated farmout well. McMoRan shall not farmout any of Participant's Interest in a Prospect on which the Program has a producing well without the prior consent of Participant.