Minimum Well Drilling Schedule; Initial and Subsequent Drilling; Election to Participate Sample Clauses

Minimum Well Drilling Schedule; Initial and Subsequent Drilling; Election to Participate. Gathering ---------------------------------------------------------------- 2.1 The Leases identified in Exhibit B provide that a minimum number of xxxxx are to be drilled before certain dates as set forth on Exhibit B as a condition to the drilling of additional xxxxx on the property subject to such Leases. 2.2 It is understood and agreed by the parties that Operator is presently unable to perform the duties and obligations of Operator hereunder with respect to (i) permitting and titling of Xxxxx, (ii) drilling and completing Xxxxx, (iii) accounting for the costs of drilling and completing Xxxxx, (iv) tending Xxxxx, (v) marketing production from the Xxxxx or (vi) accounting for, and distributing, Net Revenues and royalties and overriding royalties relating to production from the Xxxxx. The parties agree that Non-Operator will initially perform such duties and obligations and shall be entitled to receive payment from Operator of Operator's Proportionate Share of the Drilling Costs, Operating Expenses and Operator's Fee relating thereto. The parties will fully cooperate with each other and use all reasonable efforts to have Operator perform such duties and obligations relating to each of the foregoing numbered activities as soon as reasonably practicable (giving due consideration to effecting a smooth transition as to each of the foregoing numbered activities when Operator has adequate personnel in place to perform such duties and obligations with respect to such activities), provided, however, that Operator shall perform all such duties and obligations no later than when fifty (50) Xxxxx have been drilled hereunder. For example and without limiting the foregoing, until such time as Operator obtains any and all required governmental and other approvals and permissions to drill, complete and operate Xxxxx on the property subject to a Lease identified in Exhibit B and has adequate personnel in place to conduct such activities, Non-Operator shall perform such activities, and shall have all of the rights, of Operator hereunder with respect to such activities. Operator shall promptly and diligently pursue all reasonable actions to obtain such approvals and permissions and have such adequate personnel in place. Upon obtaining such approvals and permissions and having such personnel in place, Operator shall thereafter perform all such activities, and shall have all of the rights, of Operator hereunder with respect to such activities and Non-Operator shall promptly ...
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Related to Minimum Well Drilling Schedule; Initial and Subsequent Drilling; Election to Participate

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