Common use of Lease Cancellation Clause in Contracts

Lease Cancellation. If a Lease or portion thereof relating or pertaining to the Production Allocation Zone, of which the Crown is not both the lessor and Royalty Interest Owner, is cancelled, surrendered or terminated, the lessor, who is also the Royalty Interest Owner (hereinafter in this clause 5.1, the “lessor”) of such Lease shall have the right, by notice to the other Parties within ten days of such cancellation, surrender or termination, to assume and be bound by this Agreement and any applicable Operating Agreement as the owner of the Working Interest covered by such Lease, effective as of 0800 on the first day of the month following the date on which such cancellation, surrender or termination is confirmed; after expiry of the ten day period provided by clause (a), if the lessor has not so assumed the Working Interest, then the remaining Working Interest Owners, in the proportion of their revised Working Interests, shall have the right by notice to the other Parties within ten days to assume such Working Interest; in which case the lessor, without consideration except as provided in clause 5.2, shall issue them a Lease with respect thereto on the same terms and conditions as the Lease which was cancelled, surrendered or terminated; and after expiry of the total 20 day period provided by clauses (a) and (b), if the lessor and Working Interest Owners have not so assumed the Working Interest, then the lessor shall then have the right by notice to the other Parties within 20 days, to issue a Lease, covering the Working Interest of the Lease that was cancelled, surrendered, or terminated, to a person who is not an existing Working Interest Owner under this Agreement. Upon execution of a counterpart of this Agreement, such person shall become the Working Interest Owner for the Lease and shall be bound by this Agreement and any applicable Operating Agreement effective as of 0800 on the first day of the month following the date on which such cancellation, surrender or termination is confirmed. Unless the lessor or the Working Interest Owners or a person who is not an existing Working Interest Owner so assume such Working Interest by clauses (a), (b), or (c), this Agreement shall terminate effective as of the date of confirmation of the cancellation, surrender or termination of the Lease.

Lease Cancellation. If a Lease or portion thereof relating or pertaining to the Production Allocation ZoneLease, of which the Crown is not both the lessor and Royalty Interest Ownerlessor, is cancelled, surrendered or terminated, , (a) the lessor, who is also the Royalty Interest Owner (hereinafter in this clause 5.1, the “lessor”) lessor of such Lease shall have the right, by notice to the other Parties within ten days of the confirmation of such cancellation, surrender or termination, to assume and be bound by this Agreement and any applicable Operating Agreement as the owner of the Working Interest covered by such Lease, effective as of 0800 on the first day of the month following the date on which such cancellation, surrender or termination is confirmed; . (b) after expiry of the ten day period provided by clause (a), if the lessor has not so assumed the Working Interest, then the remaining Working Interest Owners, in the proportion of their revised Working Interests, shall have the right by notice to the other Parties within ten days to assume such Working Interest; in which case the lessor, without consideration except as provided in clause 5.2, shall issue them a Lease with respect thereto on the same terms and conditions as the Lease which was cancelled, surrendered or terminated; and . (c) after expiry of the total 20 day period provided by clauses (a) and (b), if the lessor and Working Interest Owners have not so assumed the Working Interest, then the lessor shall then have the right by notice to the other Parties within 20 days, to issue a Lease, covering the Working Interest of the Lease that was cancelled, surrendered, or terminated, to a person who is not an existing Working Interest Owner under this Agreement. Upon execution of a counterpart of this Agreement, such person shall become the Working Interest Owner for the Lease and shall be bound by this Agreement and any applicable Operating Agreement effective as of 0800 on the first day of the month following the date on which such cancellation, surrender or termination is confirmed. Unless the lessor or all or some of the Working Interest Owners or a person who is not an existing Working Interest Owner so assume such Working Interest by clauses (a), (b), or (c), this Agreement shall terminate effective as of the date of confirmation of the cancellation, surrender or termination of the Lease.

Lease Cancellation. If a Lease or portion thereof relating or pertaining to the Production Allocation Zone, of which the Crown is not both the lessor and Royalty Interest Owner, is cancelled, surrendered or terminated, , (a) the lessor, who is also the Royalty Interest Owner (hereinafter in this clause 5.1, the “lessor”) of such Lease shall have the right, by notice to the other Parties within ten days of such cancellation, surrender or termination, to assume and be bound by this Agreement and any applicable Operating Agreement as the owner of the Working Interest covered by such Lease, effective as of 0800 on the first day of the month following the date on which such cancellation, surrender or termination is confirmed; ; (b) after expiry of the ten day period provided by clause (a), if the lessor has not so assumed the Working Interest, then the remaining Working Interest Owners, in the proportion of their revised Working Interests, shall have the right by notice to the other Parties within ten days to assume such Working Interest; in which case the lessor, without consideration except as provided in clause 5.2, shall issue them a Lease with respect thereto on the same terms and conditions as the Lease which was cancelled, surrendered or terminated; and and (c) after expiry of the total 20 day period provided by clauses (a) and (b), if the lessor and Working Interest Owners have not so assumed the Working Interest, then the lessor shall then have the right by notice to the other Parties within 20 days, to issue a Lease, covering the Working Interest of the Lease that was cancelled, surrendered, or terminated, to a person who is not an existing Working Interest Owner under this Agreement. Upon execution of a counterpart of this Agreement, such person shall become the Working Interest Owner for the Lease and shall be bound by this Agreement and any applicable Operating Agreement effective as of 0800 on the first day of the month following the date on which such cancellation, surrender or termination is confirmed. Unless the lessor or the Working Interest Owners or a person who is not an existing Working Interest Owner so assume such Working Interest by clauses (a), (b), or (c), this Agreement shall terminate effective as of the date of confirmation of the cancellation, surrender or termination of the Lease.