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 xxxxx other than Development Drilling and Identified Development Drilling; provided, however, that the drilling of xxxxx other 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:

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 xxxxx wells other than Development Xxxxlopment Drilling and Identified Development Drilling; provided, however, that the drilling of xxxxx wells other than Development 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 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:

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 xxxxx wells other than xxxx Development Drilling and Identified Development Drilling; provided, however, that the drilling of xxxxx wells other than 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 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:

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 xxxxx other than Development Drilling and Identified Development Drilling; provided, however, that the drilling of xxxxx other 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:

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 xxxxx wells other than xxxx Development Drilling and Identified Development Drilling; provided, however, that the drilling of xxxxx wells other than 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 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: