Horizontal Xxxxx. It is expressly understood and agreed that, subject to the other terms, provisions and limitations contained in this Lease, Lessee shall have the right to drill “horizontal xxxxx” under the leased premises, or lands pooled therewith. The term “horizontal well” or “horizontally drilled well” shall mean any well that is drilled with one or more horizontal drainholes having a horizontal drainhole displacement of at least five hundred eighty-five (585) feet. For the purposes of further defining the term “horizontal xxxxx” and “horizontally drilled” reference is made to the definitions contained within Statewide Rule 86, as promulgated by the Railroad Commission of Texas, which definitions are incorporated herein for all purposes. In the event of any partial termination of the Lease as provided in the first sentence of Paragraph 6A, then, with regard to a well which is a horizontal well or a horizontally drilled well, Lessee shall be entitled to retain all sands and horizons at all depths from the surface down to a depth which is the stratigraphic equivalent of a depth of one hundred (100) feet below the base of the deepest producing formation in such well which is capable of producing oil and gas in paying quantities, but only in a spacing unit the area or number of acres of which are equal to the area or number of acres determined by adding twenty (20) acres for each five-hundred eighty-five (585) feet horizontally drilled to the original forty (40) acres deemed to be a spacing unit for each vertical well. Each such tract around each horizontally drilled well shall be as nearly in the shape of a square or a rectangle as is practical with the boundaries of the tract including the entire horizontal drainhole and the lateral boundaries of such tract being approximately equal distance from such drainhole and parallel thereto. If production should cease as to acreage included in a horizontal spacing unit or pooled unit, this Lease will terminate as to such acreage unless Lessee commences reworking or additional drilling operations on such acreage within ninety (90) days thereafter and continues such reworking or additional drilling operations until commercial production is restored thereon, provided that if more than ninety (90) days elapse between the abandonment of such well and the commencement of actual drilling operations for an additional well, or more than ninety (90) days pass since the commencement of reworking operations without the restoration of commer...
Horizontal Xxxxx. XxxxXxxxx may not drill horizontal xxxxx to satisfy any portion of its drilling obligation under Section 2.01 unless and until five horizontal xxxxx (the “Initial Horizontal Xxxxx”) have been, after the Closing Time, drilled and completed in the Target Formation in the greater Xxxxxxx-Xxxxxx field area (whether by, or at the direction of, XxxxXxxxx or any other operator, and regardless of whether XxxxXxxxx has any interest therein) so that they are capable of commencing production of Minerals. None of any such Initial Horizontal Xxxxx that are drilled or caused to be drilled by XxxxXxxxx shall count as Development Xxxxx hereunder. After the Initial Horizontal Xxxxx are drilled and completed, XxxxXxxxx may, at its option and in its sole discretion, drill or cause to be drilled horizontal xxxxx that shall be considered Development Xxxxx; provided that such xxxxx satisfy the other requirements of a Development Well. XxxxXxxxx shall notify the Trustee of any well, prior to spudding such well, that it elects to drill or cause to be drilled in the Target Formation in the greater Xxxxxx-Xxxxxx field area that constitutes an Initial Horizontal Well; provided that such notification shall not be effective if such well is incapable of commencing production of Minerals.
Horizontal Xxxxx. For purposes of this Assignment, the term “horizontal well” means any well in which the wellbore deviates at least 75° from vertical.
