Common use of Farmouts Clause in Contracts

Farmouts. The General Partner may dispose of Producing Properties by sale or Farmout when it, exercising the standard of a prudent operator, determines that (a) the Partnership lacks sufficient funds to conduct Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties and cannot obtain suitable alternative financing for such Development Drilling, Identified Development Drilling or Improved Recovery operations; (b) the properties have been downgraded by events occurring after assignment to the Partnership to the point that additional Development Drilling, Identified Development Drilling, Improved Recovery operations or continued production would no longer be desirable to the Partnership; (c) Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties would result in an excessive concentration of Partnership funds on a Producing Property creating, in the opinion of the General Partner, undue risk to the Partnership; or (d) the best interests of the Partnership would be served by the sale or Farmout. The Partnership shall not conduct any drilling of wells other than Xxxxlopment Drilling and Identified Development Drilling; provided, however, that the drilling of wells other thax Xxvelopment Drilling and Identified Development Drilling may be performed on behalf of the Partnership pursuant to Farmouts or when such drilling may be deemed necessary or appropriate to preserve or protect the Partnership's interest in or the production from a Producing Property. Any sale, Farmout or similar agreement between the Partnership and the General Partner, Affiliate or Affiliated Program will be permitted under the restrictions set forth in this Article Four and will be subject to the following conditions: (i) the General Partner, exercising the standard of a prudent operator, shall determine that the sale, Farmout or similar agreement is in the best interests of the Partnership; and (ii) the terms of the sale, Farmout or similar agreement are consistent with and in any case no less favorable than those utilized in the same geographic area for similar arrangements. Except as required by Section 4.3B(iii) or (iv), a Partnership shall acquire only those Leases that are reasonably required for the operations of the Partnership, and no Leases shall be acquired for the purpose of subsequent sale or Farmout, unless such Leases are a part of an acquisition which is sold as a package only, or unless the acquisition of undeveloped Leases by the Partnership is made after a well has been drilled nearby by third parties to a depth sufficient to indicate that such an acquisition is in the best interests of the Partnership.

Farmouts. The General Partner may dispose of Producing Properties by sale or Farmout when it, exercising the standard of a prudent operator, determines that (a) the Partnership lacks sufficient funds to conduct Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties and cannot obtain suitable alternative financing for such Development Drilling, Identified Development Drilling or Improved Recovery operations; (b) the properties have been downgraded by events occurring after assignment to the Partnership to the point that additional Development Drilling, Identified Development Drilling, Improved Recovery operations or continued production would no longer be desirable to the Partnership; (c) Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties would result in an excessive concentration of Partnership funds on a Producing Property creating, in the opinion of the General Partner, undue risk to the Partnership; or (d) the best interests of the Partnership would be served by the sale or Farmout. The Partnership shall not conduct any drilling of wells other than Xxxxlopment xxxx Development Drilling and Identified Development Drilling; provided, however, that the drilling of wells other thax Xxvelopment xxxx Development Drilling and Identified Development Drilling may be performed on behalf of the Partnership pursuant to Farmouts or when such drilling may be deemed necessary or appropriate to preserve or protect the Partnership's interest in or the production from a Producing Property. Any sale, Farmout or similar agreement between the Partnership and the General Partner, Affiliate or Affiliated Program will be permitted under the restrictions set forth in this Article Four and will be subject to the following conditions: (i) the General Partner, exercising the standard of a prudent operator, shall determine that the sale, Farmout or similar agreement is in the best interests of the Partnership; and (ii) the terms of the sale, Farmout or similar agreement are consistent with and in any case no less favorable than those utilized in the same geographic area for similar arrangements. Except as required by Section 4.3B(iii) or (iv), a Partnership shall acquire only those Leases that are reasonably required for the operations of the Partnership, and no Leases shall be acquired for the purpose of subsequent sale or Farmout, unless such Leases are a part of an acquisition which is sold as a package only, or unless the acquisition of undeveloped Leases by the Partnership is made after a well has been drilled nearby by third parties to a depth sufficient to indicate that such an acquisition is in the best interests of the Partnership.

Farmouts. The General Partner may dispose of Producing Properties by sale Sale or Farmout when it, exercising the standard of a prudent operator, determines that (a) the Partnership lacks sufficient funds to conduct Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties and cannot obtain suitable alternative financing for such Development Drilling, Identified Development Drilling or Improved Recovery operations; (b) the properties have been downgraded by events occurring after assignment to the Partnership to the point that additional Development Drilling, Identified Development Drilling, Improved Recovery operations or continued production would no longer be desirable to the Partnership; (c) Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties would result in an excessive concentration of Partnership funds on a Producing Property creating, in the opinion of the General Partner, undue risk to the Partnership; or (d) the best interests of the Partnership would be served by the sale Sale or Farmout. The Partnership shall not conduct any drilling of wells xxxxx other than Xxxxlopment Development Drilling and Identified Development Drilling; provided, however, that the drilling of wells xxxxx other thax Xxvelopment than Development Drilling and Identified Development Drilling may be performed on behalf of the Partnership pursuant to Farmouts or when such drilling may be deemed necessary or appropriate to preserve or protect the Partnership's interest in or the production from a Producing Property. Any saleSale, Farmout or similar agreement between the Partnership and the General Partner, Affiliate or Affiliated Program will be permitted under the restrictions set forth in this Article Four and will be subject to the following conditions: (i) the General Partner, exercising the standard of a prudent operator, shall determine that the saleSale, Farmout or similar agreement is in the best interests of the Partnership; and (ii) the terms of the saleSale, Farmout or similar agreement are consistent with and in any case no less favorable than those utilized in the same geographic area for similar arrangements. Except as required by Section 4.3B(iii4. 3B (iii) or (iv), a Partnership shall acquire only those Leases that are reasonably required for the operations of the Partnership, and no Leases shall be acquired for the purpose of subsequent sale Sale or Farmout, unless such Leases are a part of an acquisition which is sold as a package only, or unless the acquisition of undeveloped Leases by the Partnership is made after a well has been drilled nearby by third parties to a depth sufficient to indicate that such an acquisition is in the best interests of the Partnership.

Farmouts. The General Partner may dispose of Producing Properties by sale Sale or Farmout when it, exercising the standard of a prudent operator, determines that (a) the Partnership lacks sufficient funds to conduct Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties and cannot obtain suitable alternative financing for such Development Drilling, Identified Development Drilling or Improved Recovery operations; (b) the properties have been downgraded by events occurring after assignment to the Partnership to the point that additional Development Drilling, Identified Development Drilling, Improved Recovery operations or continued production would no longer be desirable to the Partnership; (c) Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties would result in an excessive concentration of Partnership funds on a Producing Property creating, in the opinion of the General Partner, undue risk to the Partnership; or (d) the best interests of the Partnership would be served by the sale Sale or Farmout. The Partnership shall not conduct any drilling of wells xxxxx other than Xxxxlopment Development Drilling and Identified Development Drilling; provided, however, that the drilling of wells xxxxx other thax Xxvelopment than Development Drilling and Identified Development Drilling may be performed on behalf of the Partnership pursuant to Farmouts or when such drilling may be deemed necessary or appropriate to preserve or protect the Partnership's interest in or the production from a Producing Property. Any saleSale, Farmout or similar agreement between the Partnership and the General Partner, Affiliate or Affiliated Program will be permitted under the restrictions set forth in this Article Four and will be subject to the following conditions: (i) the General Partner, exercising the standard of a prudent operator, shall determine that the saleSale, Farmout or similar agreement is in the best interests of the Partnership; and (ii) the terms of the saleSale, Farmout or similar agreement are consistent with and in any case no less favorable than those utilized in the same geographic area for similar arrangements. arrangements Except as required by Section 4.3B(iii) or (iv), a Partnership shall acquire only those Leases that are reasonably required for the operations of the Partnership, Partnership1 and no Leases shall be acquired for the purpose of subsequent sale Sale or Farmout, unless such Leases are a part of an acquisition which is sold as a package only, or unless the acquisition of undeveloped Leases by the Partnership is made after a well has been drilled nearby by third parties to a depth sufficient to indicate that such an acquisition is in the best interests of the Partnership.

Farmouts. The General Partner may dispose of Producing Properties by sale or Farmout when it, exercising the standard of a prudent operator, determines that (a) the Partnership lacks sufficient funds to conduct Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties and cannot obtain suitable alternative financing for such Development Drilling, Identified Development Drilling or Improved Recovery operations; (b) the properties have been downgraded by events occurring after assignment to the Partnership to the point that additional Development Drilling, Identified Development Drilling, Improved Recovery operations or continued production would no longer be desirable to the Partnership; (c) Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties would result in an excessive concentration of Partnership funds on a Producing Property creating, in the opinion of the General Partner, undue risk to the Partnership; or (d) the best interests of the Partnership would be served by the sale or Farmout. The Partnership shall not conduct any drilling of wells other than Xxxxlopment xxxx Development Drilling and Identified Development Drilling; provided, however, that the drilling of wells other thax Xxvelopment xxxn Development Drilling and Identified Development Drilling may be performed on behalf of the Partnership pursuant to Farmouts or when such drilling may be deemed necessary or appropriate to preserve or protect the Partnership's interest in or the production from a Producing Property. Any sale, Farmout or similar agreement between the Partnership and the General Partner, Affiliate or Affiliated Program will be permitted under the restrictions set forth in this Article Four and will be subject to the following conditions: (i) the General Partner, exercising the standard of a prudent operator, shall determine that the sale, Farmout or similar agreement is in the best interests of the Partnership; and (ii) the terms of the sale, Farmout or similar agreement are consistent with and in any case no less favorable than those utilized in the same geographic area for similar arrangements. Except as required by Section 4.3B(iii) or (iv), a Partnership shall acquire only those Leases that are reasonably required for the operations of the Partnership, and no Leases shall be acquired for the purpose of subsequent sale or Farmout, unless such Leases are a part of an acquisition which is sold as a package only, or unless the acquisition of undeveloped Leases by the Partnership is made after a well has been drilled nearby by third parties to a depth sufficient to indicate that such an acquisition is in the best interests of the Partnership.

Farmouts. The General Partner may dispose of Producing Properties by sale Sale or Farmout when it, exercising the standard of a prudent operator, determines that (a) the Partnership lacks sufficient funds to conduct Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties and cannot obtain suitable alternative financing for such Development Drilling, Identified Development Drilling or Improved Recovery operations; (b) the properties have been downgraded by events occurring after assignment to the Partnership to the point that additional Development Drilling, Identified Development Drilling, Improved Recovery operations or continued production would no longer be desirable to the Partnership; (c) Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties would result in an excessive concentration of Partnership funds on a Producing Property creating, in the opinion of the General Partner, undue risk to the Partnership; or (d) the best interests of the Partnership would be served by the sale Sale or Farmout. The Partnership shall not conduct any drilling of wells xxxxx other than Xxxxlopment Development Drilling and Identified Development Drilling; provided, however, that the drilling of wells xxxxx other thax Xxvelopment than Development Drilling and Identified Development Drilling may be performed on behalf of the Partnership pursuant to Farmouts or when such drilling may be deemed necessary or appropriate to preserve or protect the Partnership's interest in or the production from a Producing Property. Any saleSale, Farmout or similar agreement between the Partnership and the General Partner, Affiliate or Affiliated Program will be permitted under the restrictions set forth in this Article Four and will be subject to the following conditions: (i) the General Partner, exercising the standard of a prudent operator, shall determine that the saleSale, Farmout or similar agreement is in the best interests of the Partnership; and (ii) the terms of the saleSale, Farmout or similar agreement are consistent with and in any case no less favorable than those utilized in the same geographic area for similar arrangements. Except as required by Section 4.3B(iii4.3B (iii) or (iv), a Partnership shall acquire only those Leases that are reasonably required for the operations of the Partnership, and no Leases shall be acquired for the purpose of subsequent sale Sale or Farmout, unless such Leases are a part of an acquisition which is sold as a package only, or unless the acquisition of undeveloped Leases by the Partnership is made after a well has been drilled nearby by third parties to a depth sufficient to indicate that such an acquisition is in the best interests of the Partnership.

Farmouts. The General Partner may dispose of Producing Properties by sale or Farmout when it, exercising the standard of a prudent operator, determines that (a) the Partnership lacks sufficient funds to conduct Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties and cannot obtain suitable alternative financing for such Development Drilling, Identified Development Drilling or Improved Recovery operations; (b) the properties have been downgraded by events occurring after assignment to the Partnership to the point that additional Development Drilling, Identified Development Drilling, Improved Recovery operations or continued production would no longer be desirable to the Partnership; (c) Development Drilling, Identified Development Drilling or Improved Recovery operations on the properties would result in an excessive concentration of Partnership funds on a Producing Property creating, in the opinion of the General Partner, undue risk to the Partnership; or (d) the best interests of the Partnership would be served by the sale or Farmout. The Partnership shall not conduct any drilling of wells xxxxx other than Xxxxlopment Development Drilling and Identified Development Drilling; provided, however, that the drilling of wells xxxxx other thax Xxvelopment than Development Drilling and Identified Development Drilling may be performed on behalf of the Partnership pursuant to Farmouts or when such drilling may be deemed necessary or appropriate to preserve or protect the Partnership's interest in or the production from a Producing Property. Any sale, Farmout or similar agreement between the Partnership and the General Partner, Affiliate or Affiliated Program will be permitted under the restrictions set forth in this Article Four and will be subject to the following conditions: (i) the General Partner, exercising the standard of a prudent operator, shall determine that the sale, Farmout or similar agreement is in the best interests of the Partnership; and (ii) the terms of the sale, Farmout or similar agreement are consistent with and in any case no less favorable than those utilized in the same geographic area for similar arrangements. Except as required by Section 4.3B(iii) or (iv), a Partnership shall acquire only those Leases that are reasonably required for the operations of the Partnership, and no Leases shall be acquired for the purpose of subsequent sale or Farmout, unless such Leases are a part of an acquisition which is sold as a package only, or unless the acquisition of undeveloped Leases by the Partnership is made after a well has been drilled nearby by third parties to a depth sufficient to indicate that such an acquisition is in the best interests of the Partnership.