Common use of Full Development Clause in Contracts

Full Development. (1) That the A.O. may either require the drilling and production of such xxxxx as, in his opinion, are necessary to insure reasonable diligence in the development and operation of the property, or in lieu thereof require the payment of an amount as determined by the A.O. to compensate the Lessors in full each month for the estimated loss of royalty. (2) To drill and produce all xxxxx necessary to offset or protect the leased land from drainage, including drainage occurring from production on other lands of the Lessors under lease at a lower royalty rate, or in lieu thereof, to compensate the Lessors in full each month for the estimated loss of royalty through drainage. The necessity for offset xxxxx shall be determined by the A.O. Payment in lieu of drilling and production shall be with the consent of, and in an amount determined, by the Secretary. (3) To drill and produce other xxxxx, at the election of the Lessee, subject to any system of well spacing or production allotments authorized and approved under applicable law or regulations, approved by the Secretary and affecting the field or area in which the leased lands are situated.

Full Development. (1) That the A.O. may either require the drilling and production of such xxxxx as, in his opinion, are necessary to insure reasonable diligence in the development and operation of the property, or in lieu thereof require the payment of an amount as determined by the A.O. to compensate the Lessors Lessor in full each month for the estimated loss of royalty. (2) To drill and produce all xxxxx necessary to offset or protect the leased land from drainage, including drainage occurring from production on other lands of the Lessors Lessor under lease at a lower royalty rate, or in lieu thereof, to compensate the Lessors Lessor in full each month for the estimated loss of royalty through drainage. The necessity for offset xxxxx shall be determined by the A.O. Payment in lieu of drilling and production shall be with the consent of, and in an amount determined, by the Secretary. (3) To drill and produce other xxxxx, at the election of the Lessee, subject to any system of well spacing or production allotments authorized and approved under applicable law or regulations, approved by the Secretary and affecting the field or area in which the leased lands are situated.