Common use of Obligation to Complete and Equip Clause in Contracts

Obligation to Complete and Equip. Chesapeake shall, at its sole cost and expense (as between the Parties), (a) attempt to complete in the Target Formation each Development Well that reasonably appears to Chesapeake, acting in accordance with the Reasonably Prudent Operator Standard, to be capable of producing Minerals in quantities sufficient to pay drilling, completion, equipping and operating costs, (b) equip for production each Development Well that is successfully completed, (c) connect such Development Well to a gathering line, pipeline or other storage or marketing facility and commence production, and (d) plug and abandon all Development Xxxxx that are unsuccessful to the extent required by applicable law; provided, however, that when and where neither Assignor nor one of its Affiliates is the operator of a Development Well and Assignor has elected to participate as a non-operator in the drilling of such Development Well, Assignor shall use commercially reasonable efforts to exercise its contractual rights with respect to the operator of such Development Well to cause such operator to comply with Chesapeake’s obligations set forth in this Section 2.2.

Appears in 4 contracts

Samples: Development Agreement, Development Agreement (Chesapeake Granite Wash Trust), Development Agreement (Chesapeake Granite Wash Trust)

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