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Common use of Operator and Non Clause in Contracts

Operator and Non. Operator shall each pay its Proportionate Share of the actual third-party costs of drilling and completing each Well plus an amount to cover general and administrative, and technical supervision, expenses allocated to the drilling and completion of each Well (the "Drilling Costs"). For each Well for which the drilling is commenced prior to March 31, 2005, the amount allocated for general and administrative, and technical supervision, expenses for the drilling and completion of each such Well shall be Fourteen Thousand Dollars ($14,000). Thereafter, for each annual period beginning April 1 and ending March 31 of the following year, Operator shall determine the amount to be allocated for general and administrative, and technical supervision, expenses allocated to the drilling and completion of a Well for which the drilling is commenced during such period, such amount to be equal to the amount Operator allocates to Xxxxx drilled for any limited partnership or other entity from which Operator receives funds to drill such Xxxxx. Operator shall give Non-Operator thirty (30) days' prior written notice of the anticipated drilling date for a Well in which Non-Operator has elected to participate. No later than five (5) days prior to the drilling by Operator of a Well in which Non-Operator has elected to participate, Non-Operator shall pay to Operator its Proportionate Share of the Drilling Costs of the Well as estimated in an Authority for Expenditure ("AFE") to be furnished to Non-Operator by Operator along with the written notice to be provided by Operator to Non-Operator pursuant to Section 2.4 hereof. Within thirty (30) days after Operator determines the final third-party costs of drilling and completing a Well, Operator shall either (i) invoice Non-Operator for its Proportionate Share of the final costs in excess of the amount prepaid by Non-Operator and Non-Operator shall pay such invoice within thirty (30) days after receipt or (ii) at the election of Non-Operator, Operator shall refund to Non-Operator, or credit against Non-Operator's Proportionate Share of the Drilling Costs for one or more other Xxxxx in which it has elected to participate, the amount prepaid by Non-Operator in excess of the final Drilling Costs for the Well. It is expressly understood and agreed that if the final Drilling Costs for a Well exceed one hundred ten percent (110%) of the Drilling Costs as estimated in the AFE for the Well, Non-Operator shall have no obligation to pay more than its Proportionate Share (based upon its election to participate in the Well pursuant to Section 2.4 hereof) of such excess, provided, however, that if Non-Operator does not pay such Proportionate Share of the excess, its Proportionate Share of the Well shall be reduced to a share equal to the share of the final Drilling Costs of the Well paid by it.

Appears in 5 contracts

Samples: Drilling and Operating Agreement (Atlas America Public # 14-2004 Program), Drilling and Operating Agreement (Atlas America Public #15-2005 Program), Drilling and Operating Agreement (Atlas America Public #16-2007 (A) L.P.)

Operator and Non. Operator shall each pay its Proportionate Share of the actual third-party costs of drilling and completing each Well plus an amount to cover general and administrative, and technical supervision, expenses allocated to the drilling and completion of each Well (the "Drilling Costs"). For each Well for which the drilling is commenced prior to March 31, 2005, the amount allocated for general and administrative, and technical supervision, expenses for the drilling and completion of each such Well shall be Fourteen Thousand Dollars ($14,000). Thereafter, for each annual period beginning April 1 and ending March 31 of the following year, Operator shall determine the amount to be allocated for general and administrative, and technical supervision, expenses allocated to the drilling and completion of a Well for which the drilling is commenced during such period, such amount to be equal to the amount Operator allocates to Xxxxx drilled for any limited partnership or other entity from which Operator receives funds to drill such Xxxxx. Operator shall give Non-Operator thirty (30) days' prior written notice of the anticipated drilling date for a Well in which Non-Operator has elected to participate. No later than five (5) days prior to the drilling by Operator of a Well in which Non-Operator has elected to participate, Non-Operator shall pay to Operator its Proportionate Share of the Drilling Costs of the Well as estimated in an Authority for Expenditure ("AFE") to be furnished to Non-Operator by Operator along with the written notice to be provided by Operator to Non-Operator pursuant to Section 2.4 hereof. Within thirty (30) days after Operator determines the final third-party costs of drilling and completing a Well, Operator shall either (i) invoice Non-Operator for its Proportionate Share of the final costs in excess of the amount prepaid by Non-Operator and Non-Operator shall pay such invoice within thirty (30) days after receipt or (ii) at the election of Non-Operator, Operator shall refund to Non-Operator, or credit against Non-Operator's ’s Proportionate Share of the Drilling Costs for one or more other Xxxxx in which it has elected to participate, the amount prepaid by Non-Operator in excess of the final Drilling Costs for the Well. It is expressly understood and agreed that if the final Drilling Costs for a Well exceed one hundred ten percent (110%) of the Drilling Costs as estimated in the AFE for the Well, Non-Operator shall have no obligation to pay more than its Proportionate Share (based upon its election to participate in the Well pursuant to Section 2.4 hereof) of such excess, provided, however, that if Non-Operator does not pay such Proportionate Share of the excess, its Proportionate Share of the Well shall be reduced to a share equal to the share of the final Drilling Costs of the Well paid by it.

Appears in 1 contract

Samples: Drilling and Operating Agreement (Atlas Energy Resources, LLC)