Common use of No IPS or MGS Clause in Contracts

No IPS or MGS. 4.5.2.1 If IPS Project Start-up has not occurred and a Major Gas Sale has not been Sanctioned by year-end 2019, the following shall occur: (1) subject to Paragraph 4.5.2.2, the Point Thomson Unit and the PTUA shall terminate Without Appeal; (2) except for leases subject to Paragraph 4.5.2.3, each WIO will immediately surrender its leases and all such acreage shall be automatically released Without Appeal to the State; (3) each WIO agrees that it will not apply to form a compulsory unit with the Alaska Oil and Gas Conservation Commission with respect to any lease formerly within the Point Thomson Unit; and (4) this Agreement shall terminate. 4.5.2.2 If IPS Project Start-up has not occurred and a Major Gas Sale has not been Sanctioned by year-end 2019, then the WIOs may submit an alternative POD for the Point Thomson Unit no later than sixty (60) days prior to year- end 2019. Submittal and approval of the alternative POD shall be subject to the terms of the PTUA including applicable State law. Nonetheless, DNR shall have sole discretion to accept or reject an alternative POD, and a final Commissioner decision on the alternative POD is Without Appeal. For purposes of this paragraph the WIOs agree not to assert that Section 21 of the PTUA applies in any respect to review of or a decision on the proposed alternative POD. 4.5.2.3 If the Point Thomson Unit is terminated under Paragraph 4.5.2.1, the lessees of leases containing the PTU 15, PTU 16 and xxxxx drilled after execution of this Agreement, and lessees of leases containing any other xxxxx capable of producing in paying quantities, may submit a Plan of Operations (“POO”) for each lease to the Director within sixty (60) days of the date of Point Thomson Unit termination. The POO shall provide for placing the well on producing status within two (2) years of the date of approval of the POO. Approval or rejection of the POO shall be within the sole discretion of the DNR. If the Director denies approval of the POO, that decision may be appealed to the Commissioner. The Commissioner’s decision on the POO shall be Without Appeal. If the lessees fail to submit a POO for the leases within sixty (60) days following Point Thomson Unit termination, or the Commissioner denies approval of the POO, the leases shall terminate with acreage returning to the State Without Appeal. If the Director or the Commissioner approve the POO and the lessees fail to place the well on producing status within two years, the lease shall terminate with acreage returning to the State Without Appeal.