Common use of Operations Pending Closing Clause in Contracts

Operations Pending Closing. Seller shall operate the Seller-operated Interests using the same standard of care as imposed on the "Operator" under the applicable joint operating agreements until Closing, or such later time as any applicable joint operating agreement may require, when such operation shall be turned over to, and become the responsibility of, Buyer or its designees. During the period from the date of this Agreement to Closing, Seller shall: (i) consult with Buyer with respect to all AFE's over FIFTY THOUSAND DOLLARS ($50,000) net to the interests of Seller which are received by Seller with respect to any Interest, and consult with Buyer with respect to all material decisions to be made with respect to the Interests, including, without limitation, the incurring of costs for discretionary expenditures for operations in excess of FIFTY THOUSAND DOLLARS ($50,000) net to the interest of Seller for which AFE's are not prepared; (ii) not transfer, sell, hypothecate, encumber, abandon or otherwise dispose of any material portion of the Interests (other than the sale of production in the ordinary course of business) or as required in connection with the exercise of third parties of preferential rights to purchase any of the Interests without the express written consent of Buyer; (iii) permit Buyer and its representatives, at Buyer's sole risk and expense, to have reasonable access to the Interests operated by Seller, and shall assist Buyer in gaining reasonable access to the Interests operated by third parties.

Operations Pending Closing. Seller shall operate the Seller-operated ----------------------------- Interests using the same standard of care as imposed on the "Operator" under the applicable joint operating agreements until Closing, or such later time as any applicable joint operating agreement may require, when such operation shall be turned over to, and become the responsibility of, Buyer or its designeesBuyer. During the period from the date of this Agreement to Closing, Seller shall: shall (i) consult with Buyer with respect to all AFE's over FIFTY TWENTY-FIVE THOUSAND DOLLARS ($50,00025,000) net to the interests of Seller which are received by Seller with respect to any Interest, and consult with Buyer with respect to all material decisions to be made with respect to the Interests, including, without limitation, the incurring of costs for discretionary expenditures for operations in excess of FIFTY TWENTY-FIVE THOUSAND DOLLARS ($50,00025,000) net to the interest of Seller for which AFE's are not prepared; , (ii) operate the Interests in accordance with the terms and conditions of all applicable contracts, laws and regulations, and (iii) not transfer, sell, hypothecate, encumber, abandon or otherwise dispose of any material portion of the Interests (other than the sale of production in the ordinary course of business) or as required in connection with the exercise of third parties of preferential rights to purchase any of the Interests without the express written consent of Buyer; (iii) permit Buyer and its representatives, at Buyer's sole risk and expense, to have reasonable access to the Interests operated by Seller, and shall assist Buyer in gaining reasonable access to the Interests operated by third parties.

Operations Pending Closing. Seller shall operate the Seller-operated Oil and Gas Interests using the same standard of care as imposed on the "“Operator" ” under the applicable joint operating agreements until Closing, or such later time as any applicable joint operating agreement may require, when such operation operations shall be turned over to, and become the responsibility of, Buyer or its designeesBuyer. During the period from the date of this Agreement to Closing, Seller shall: shall (i) consult with Buyer with respect to all AFE's ’s over FIFTY THOUSAND DOLLARS Two Hundred and Fifty Thousand Dollars ($50,000250,000.00) net to the interests of Seller which are received by Seller with respect to any Oil and Gas Interest, and consult with Buyer with respect to all material decisions to be made with respect to the InterestsSubject Assets, including, without limitation, including the incurring of costs for discretionary expenditures for operations in excess of FIFTY THOUSAND DOLLARS Two Hundred and Fifty Thousand Dollars ($50,000250,000.00) net to the interest of Seller for which AFE's ’s are not prepared; , except as to the operations described in Schedule 9, which Seller may conduct without consulting with Buyer, (ii) operate the Seller-operated Subject Assets in accordance with the terms and conditions of all applicable contracts, laws, and regulations, and (iii) not transfer, sell, hypothecate, encumber, abandon abandon, or otherwise dispose of any material portion of the Oil and Gas Interests (other than the sale of production in the ordinary course of business) business or as required in connection with the exercise of third parties of preferential rights to purchase any of the Interests Oil and Gas Interests) without the express written consent of Buyer; (iii) permit Buyer and its representatives, at Buyer's sole risk and expense, to have reasonable access to the Interests operated by Seller, and shall assist Buyer in gaining reasonable access to the Interests operated by third parties.

Operations Pending Closing. Seller shall operate the Seller-operated Oil and Gas Interests using the same standard of care as imposed on the "“Operator" ” under the applicable joint operating agreements until Closing, or such later time as any applicable joint operating agreement may require, when such operation shall be turned over to, and become the responsibility of, Buyer or its designeesBuyer. During the period from the date of this Agreement to Closing, Seller shall: shall (i) consult with Buyer with respect to all AFE's ’s over FIFTY THOUSAND DOLLARS One Hundred Thousand Dollars ($50,000100,000.00) net to the interests of Seller which are received by Seller with respect to any Oil and Gas Interest, and consult with Buyer with respect to all material decisions to be made with respect to the Interests, including, without limitation, the incurring of costs for discretionary expenditures for operations in excess of FIFTY THOUSAND DOLLARS Fifty Thousand Dollars ($50,00050,000.00) net to the interest of Seller for which AFE's ’s are not prepared; , except as to the operations described in Schedule 9, which Seller may conduct without consulting with Buyer, (ii) use commercially reasonable efforts to operate the Seller-operated Oil and Gas Interests in accordance with the terms and conditions of all applicable contracts, laws, and regulations in all material respects, and (iii) not transfer, sell, hypothecate, encumber, abandon abandon, or otherwise dispose of any material portion of the Oil and Gas Interests (other than the sale of production in the ordinary course of business) business or as required in connection with the exercise of third parties of preferential rights to purchase any of the Interests Oil and Gas Interests) without the express written consent of Buyer; (iii) permit Buyer and its representatives, at Buyer's sole risk and expense, to have reasonable access to the Interests operated by Seller, and shall assist Buyer in gaining reasonable access to the Interests operated by third parties.

Operations Pending Closing. Seller Sellers shall operate the Seller-Interests operated Interests -------------------------- by either Seller using the same standard of care (i) as an ordinary prudent operator, or (ii) if the Interests are subject to an operating agreement, as imposed on the "Operator" under the applicable such joint operating agreements agreement, in either case, until Closing, or such later time as any applicable joint operating agreement may require, when such operation shall be turned over to, and become the responsibility of, Buyer or its designeesBuyer. During the period from the date of this Agreement to Closing, Seller shall: Sellers shall (i) consult with Buyer with respect to all AFE's over FIFTY THOUSAND DOLLARS ($50,000) 100,000.00 net to the interests of Seller Sellers which are received by Seller Sellers with respect to any Interest, and consult with Buyer with respect to all material decisions to be made with respect to the Interests, including, without limitation, the incurring of costs for discretionary expenditures for operations in excess of FIFTY THOUSAND DOLLARS ($50,000) 100,000.00 net to the interest of Seller Sellers for which AFE's are not prepared; , (ii) operate the Interests in accordance with the terms and conditions of all applicable contracts, laws and regulations, and (iii) not transfer, sell, hypothecate, encumber, abandon or otherwise dispose of any material portion of the Interests (other than the sale of production in the ordinary course of business) or as required in connection with the exercise of third parties of preferential rights to purchase any of the Interests without the express written consent of Buyer; (iii) permit Buyer and its representatives, at Buyer's sole risk and expense, to have reasonable access to the Interests operated by Seller, and shall assist Buyer in gaining reasonable access to the Interests operated by third parties.