Operations by Fewer Than All Parties. If fewer than all but one (1) or more PARTIES owning not less than forty percent (40%) WORKING INTEREST elect to participate in and agree to bear the cost and risk of drilling the proposed well, OPERATOR, even if OPERATOR is a NON-PARTICIPATING PARTY, shall have the option of drilling such well for the PARTICIPATING PARTIES under this Agreement. OPERATOR, immediately after expiration of the applicable notice period, shall advise the PARTICIPATING PARTIES of (a) the total interest of the PARTIES approving such operation, and (b) its recommendation as to whether the PARTICIPATING PARTIES should proceed with the operation as proposed. Each PARTICIPATING PARTY, within forty-eight (48) hours (inclusive of Saturday, Sunday or legal holidays) after receipt of such notice, shall advise the proposing PARTY of its desire to (a) limit participation to such PARTY'S interest as shown on Exhibit "A", or (b) carry its proportionate part of NON-PARTICIPATING PARTIES' interest, or (c) participate with a lesser percentage than its proportionate part of the NON-PARTICIPATING PARTIES' interest. The proposing PARTY, at its election, may withdraw such proposal if there is insufficient participation and shall promptly notify all PARTIES of such decision. If the well is commenced within ninety (90) days after the date of the last applicable election date and is drilled as proposed in accordance with this Agreement, any PARTY electing not to participate shall be deemed to have relinquished its operating rights in such well as if it were a NON-CONSENT WELL. However, in the situation in which a rig is on location and standby charges are accumulating, thus precipitating a forty-eight (48) hour response period, the well must be commenced within fifteen (15) days. If no operations are begun within such time period, the effect shall be as if the proposal had not been made. Operations shall be deemed to have commenced (a) on the date the contract for a new platform is let, if the notice indicated the need for such platform; or (b) the date rigging-up operations on the well are commenced. Recoupment of costs shall be determined by Sections 12.2 and 12.5, if applicable, and the drilling of such well shall be governed by Article XII as applicable; however, percentages under Section 12.2 shall be as follows:
Operations by Fewer Than All Parties. If, after the election (if applicable) made under Article 10.4 (Second Opportunity to Participate), fewer than all but two (2) or more Parties having a combined Working interest of fifty percent (50%) or more elect to participate in the proposed operation, the proposing Party shall notify the Participating Parties, and each Participating Party shall have twenty-four (24) hours, exclusive of Saturdays, Sundays, and federal holidays, after receipt of the notice to notify the proposing Party of the portion of costs and risks attributable to the total Non-participating Parties' interests it elects to pay and bear. Unless otherwise agreed by the Participating Parties, each Participating Party may, but shall not be obligated to, pay and bear that portion of the costs and risks attributable to the total Non-participating Parties' interests in the ratio that the Participating Party's interest bears to the total interests of all Participating Parties who elect to pay and bear a portion of costs and risks attributable to the total Non- participating Parties' interests. Failure to respond shall be deemed to be an election not to pay or bear any additional costs or risks. If the Participating Parties agree to pay and bear one hundred percent (100%) of the costs and risks of the operation, Operator, subject to Article 4.2 (Substitute Operator), shall conduct the operation as a Non-consent Operation for the benefit of the Participating Parties, and the provisions of Article 13 (Non-consent Operations) shall apply. If such agreement is not obtained, however, the operation shall not be conducted and the effect shall be as if the proposal had not been made.
Operations by Fewer Than All Parties. Except for a DEVELOPMENT WELL(S) under Section 12.7, if fewer than all PARTIES, but one (1) or more PARTIES having NOT LESS THAN forty percent (40%) WORKING INTEREST approves a DEVELOPMENT OPERATION; OPERATOR shall conduct such operation pursuant to Article XII. If such operations are to be conducted from an existing platform, the operations participated in by all of the PARTIES shall have preference, unless otherwise agreed to by the PARTIES hereto.
Operations by Fewer Than All Parties. If after the second notice provided for in Article 12.2 above, less than all, but one (1) or more Parties owning twenty-five percent (25%)or more in interest in the Lease, elects to participate in such operation, the proposing Party shall advise the Participating Parties of (a) the total interest of the Parties approving such operation, and (b) its recommendation as to whether the Participating Parties should proceed with the operation as proposed. Each Participating Party within forty-eight (48) hours after receipt of such notice, shall advise the proposing Party of its desire to (a) limit participation to its existing working interest, or (b) carry its proportionate part of or any part of the Non-Participating Parties' interest. Failure of a Participating Party receiving such a notice to reply within the fixed period shall constitute an election by the Party not to carry its proportionate part of the Non-Participating Parties' interest. The proposing Party, at its election, may withdraw such proposal if there is insufficient participation, and shall promptly notify all Parties of such decision. If the operation is fully subscribed, it shall be conducted as a Non-Consent Operation for the joint account of the Participating Parties. If such operations are to be conducted from an existing Platform, the election to participate shall be made by one (1) or more Parties having a combined participating interest of twenty-five percent (25%) or more in such Platform. 42
Operations by Fewer Than All Parties. If, after the second notice provided for in Section 11.2 above, fewer than all but one (1) or more Parties owning twenty five percent (25%) or more interest in the Lease still elect to participate in the proposed operation, each of the Parties electing to participate shall notify the other Parties so electing what portion, if any, of the total non-participating interest it wishes to acquire; each such Party being entitled to acquire the non-participating interest in the ratio that such Party's Working Interest at the time the original proposal was made bears to the total Working Interest of all Parties electing to participate. If the Parties electing to participate subscribe to all of the non-participating interest so as to permit payment for one hundred percent (100%) of the cost of such operation, then Operator or the largest interest owner participating in such operation if Operator is not a Participating Party, shall proceed to conduct such operation in accordance with Article 12 below; provided, however, if operations are being conducted from a Platform, then Operator shall conduct such operation. If one hundred percent (100%) of the cost of such operation is not subscribed to, then such operation shall not be conducted and it shall be as if no proposal had been made.
Operations by Fewer Than All Parties. (Alternative 3)
Operations by Fewer Than All Parties. If fewer than all but one (1) or more Parties having a combined Working Interest of twenty percent (20%) or more elect to participate in and agree to bear all of the cost and risk of drilling the proposed well, Operator shall drill such well under this Agreement and the applicable provisions of Article 12 and the following special provisions shall apply:
Operations by Fewer Than All Parties. If fewer than all but one (1) or more Parties having a combined Working Interest of twenty percent (20%) or more elect to participate in and agree to bear all of the cost, risk and liability of a Development Operation, Operator shall conduct such operation pursuant to Article 12.
Operations by Fewer Than All Parties. If fewer than all but one (1) or more Parties having a combined Participating Interest in the well of twenty percent (20%) or more approve a proposal and agree to bear the cost, risk, and liabilities (including loss of the hole due to deepening of any well) thereof, except a proposal to plug and abandon, Operator shall conduct the same as a Non-Consent Operation for such Parties pursuant to the provisions of Article 12. If no proposal receives the required approval, the well shall be plugged and abandoned at the expense of all Participating Parties unless any Participating Party notifies Operator within twenty-four (24) hours after the end of the last applicable election period that it desires to immediately assume all costs and risks including liabilities of further operations, in which event Operator shall, as promptly as possible, commence the proposed operation pursuant to the provisions of Article 12. In the event there is more than one (1) Party, each of which is willing to assume all costs, risks and liabilities of further operations, but each desires to perform a different operation, then the order of priority as listed above herein shall prevail and govern.
Operations by Fewer Than All Parties. If, after the election (if applicable) made under Article 10.8.3
