Operations Standard. It is the express intent of Grantor and Grantee that the Overriding Royalty Interest shall constitute (and this Conveyance shall conclusively be construed for all purposes as creating) single, separate non-operating rights with respect to the Subject Leases for all purposes. Grantor and Grantee hereby expressly negate any intent to create (and this Conveyance shall never be construed as creating) a mining or other partnership or joint venture or other relationship subjecting Grantor and Grantee to joint liability. Nothing contained in this Conveyance shall be deemed to prevent or restrict Grantor from electing not to participate in any operations that are to be conducted under the terms of any operating agreement, unit operating agreement, contract for development, or similar instrument affecting or pertaining to the Subject Leases (or any portion thereof) and permitting consenting parties to conduct non-consent operations thereon if a reasonable and prudent operator, acting in conformity with sound field practices.
Operations Standard. To the extent that Grantor controls such matters and notwithstanding anything to the contrary herein, Grantor agrees that it will conduct and carry on, or cause to be conducted and carried on, the development, maintenance and operation of the Subject Well in the same manner as a reasonably prudent operator in the applicable region would do under the same or similar circumstances acting with respect to its own properties (without regard to the existence of the Net Profits Interest). Grantee acknowledges that Grantor is and shall be an undivided interest owner with respect to the Subject Well. Grantee agrees that the acts or omissions of Grantor’s co-owners shall not be deemed to constitute a violation of the provisions of this Section 4.1, nor shall any action required by a vote of co-owners be deemed to constitute such a violation so long as Grantor has voted its interest in a manner designed to comply with this Section 4.1. Nothing contained in this Section 4.1 shall be deemed to prevent or restrict Grantor from electing not to participate in any operations that are to be conducted under the terms of any operating agreement, unit operating agreement, contract for development, or similar instrument affecting or pertaining to the Subject Well and permitting consenting parties to conduct non-consent operations thereon if a reasonably prudent operator in the applicable region acting with respect to its own properties (without regard to the existence of the Net Profits Interest) would make such elections.
Operations Standard. Forest shall conduct all Development Operations, Rework Operations and Area-Wide Operations as a reasonable prudent operator, in a good and workmanlike manner, with due diligence and dispatch, and in accordance with (a) good oilfield practice, (b) the terms and conditions of this Agreement and the Operating Agreement, (c) any other standards or guidelines agreed upon by the Program Development Committee, including payment of all Third Party invoices in connection with operations no later than within 30 days of the date due, and (d) Applicable Law.
Operations Standard. The Borrower and Payee acknowledge that Payee has no right or power to participate in the selection of a drilling contractor, to propose the drilling of a well, to determine the timing or sequence of drilling operations, to commence or shut down production, to take over operations, or to share in any operating decision whatsoever. The Borrower and Payee hereby expressly negate any intent to create (and this Agreement shall never be construed as creating) a mining or other partnership or joint venture or other relationship subjecting the Borrower and Payee to joint liability. Nothing contained in this Agreement shall be deemed to prevent or restrict the Borrower from electing not to participate in any operations that are to be conducted under the terms of any operating agreement, development agreement, unit operating agreement, contract for development, or similar instrument affecting or pertaining to the Subject Interests (or any portion thereof) and permitting consenting parties to conduct non-consent operations thereon consistent with the Prudent Operator Standard.
