Common use of Order of Preference of Operations Clause in Contracts

Order of Preference of Operations. Except as otherwise specifically provided in this Agreement, if any party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party under this Article VI, such party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such operation is to be conducted, to deliver to all parties entitled to participate in the proposed operation such party’s alternative proposal, such alternate proposal to contain the same information required to be included in the initial proposal. Each party receiving such proposals shall elect by delivery of notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party not electing within the time required shall be deemed not to have voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such result to all parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, if a drilling rig is on location). Each party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such notice to elect by delivery of notice to Operator to participate in such operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2.; failure by a party to deliver notice within such period shall be deemed an election not to participate in the prevailing proposal.

Order of Preference of Operations. Except as otherwise specifically provided in this Agreement, if any party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party under this Article VI, such the party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday Sunday, and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such the operation is to be conducted, to deliver to all parties entitled to participate in the proposed operation such the party’s alternative proposal, such that alternate proposal to contain the same information required to be included in the initial proposal. Each party receiving such these proposals shall elect by delivery of delivering a notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday Sunday, and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party not electing within the time required shall be deemed not to have voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such the result to all parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday Sunday, and legal holidays, if a drilling rig is on location). Each party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such the notice to elect by delivery of notice to Operator to participate in such the operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2.; , failure by a party to deliver a notice within such the period shall be deemed an election not to participate in the prevailing proposal.

Order of Preference of Operations. Except as otherwise specifically provided in this Agreementagreement, if any party Party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party Party under this Article VI, such party the Party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday Sunday, and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such the operation is to be conducted, to deliver to all parties entitled to participate in the proposed operation such partythe Party’s alternative proposal, such that alternate proposal to contain the same information required to be included in the initial proposal. Each party Party receiving such these proposals shall elect by delivery of delivering a notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday Sunday, and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party Party not electing within the time required shall be deemed not to have voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such the result to all parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday Sunday, and legal holidays, if a drilling rig is on location). Each party Party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such the notice to elect by delivery of notice to Operator to participate in such the operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2.; , failure by a party Party to deliver a notice within such the period shall be deemed an election not to participate in the prevailing proposal.

Order of Preference of Operations. Except as otherwise specifically provided in this Agreementagreement, if any party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party under this Article VI, such party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such operation is to be conducted, to deliver to all parties entitled to participate in the proposed operation such party’s 's alternative proposal, such alternate proposal to contain the same information required to be included in the initial proposal. Each party receiving such proposals shall elect by delivery of notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party not electing within the time required shall be deemed not to have voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such result to all parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, hours if a drilling rig is on location). Each party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such notice to elect by delivery of notice to Operator to participate in such operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2.; failure by a party to deliver notice within such period shall be deemed an election not to participate in the prevailing proposal.

Order of Preference of Operations. Except as otherwise specifically provided in this Agreementagreement, if any party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party under this Article VI, such party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such operation is to be conducted, to deliver to all parties entitled to participate in the proposed operation such party’s alternative proposal, such alternate proposal to contain the same information required to be included in the initial proposal. Each party receiving such proposals shall elect by delivery of notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party not electing within the time required shall be deemed not to have voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such result to all parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, if a drilling rig is on location). Each party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such notice to elect by delivery of notice to Operator to participate in such operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2.; failure by a party to deliver notice within with in such period shall be deemed an election not to participate in the prevailing proposal.

Order of Preference of Operations. Except as otherwise specifically provided in this Agreement, if any party Party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party Party under this Article VI, such party Party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday Sunday, and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such the operation is to be conducted, to deliver to all parties Parties entitled to participate in the proposed operation such partythe Party’s alternative proposal, such alternate alternative proposal to contain the same information required to be included in the initial proposal. Each party Party receiving such these proposals shall elect by delivery of delivering a notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday Sunday, and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party Party not electing within the time required shall be deemed not to have voted. The proposal receiving the vote of parties Parties owning the largest aggregate percentage interest of the parties Parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such the result to all parties Parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday Sunday, and legal holidays, if a drilling rig is on location). Each party Party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such the notice to elect by delivery of notice to Operator to participate in such the operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2.; failure . Failure by a party Party to deliver a notice within such the period shall be deemed an election not to participate in the prevailing proposal.

Order of Preference of Operations. Except as otherwise specifically provided in this Agreementagreement, if any party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party under this Article VI, such party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such operation is to be conducted, to deliver to all parties entitled to participate in the proposed operation such party’s 's alternative proposal, such alternate proposal to contain the same information required to be included in the initial proposal. Each party receiving such proposals shall elect by delivery of notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party not electing within the time required shall be deemed not to have voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such result to all parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, if a drilling rig is on location). Each party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such notice to elect by delivery of notice to Operator the Manger of Operations to participate in such operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2.; failure by a party to deliver notice to the Manger of Operations within such period shall be deemed an election not to participate in the prevailing proposal. SEE, ALSO, ARTICLE XVI.

Order of Preference of Operations. Except as otherwise specifically provided in this Agreementagreement, if any party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party under this Article VI, such party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such operation is to be conducted, to deliver to all parties entitled to participate in the proposed operation such party’s 's alternative proposal, such alternate proposal to contain the same information required to be included in the initial proposal. Each party receiving such proposals shall elect by delivery of notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party not electing within the time required shall be deemed not to have voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such result to all parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, if a drilling rig is on location). Each party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such notice to elect by delivery of notice to Operator to participate in such operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2.; failure by a party to deliver notice within such period shall be deemed an election not to participate in the prevailing proposal.

Order of Preference of Operations. Except as otherwise specifically provided in this Agreementagreement, if any party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party under this Article VI, such party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such operation is to be conducted, to deliver to all parties entitled to participate in the proposed operation such party’s alternative proposal, such alternate proposal to contain the same information required to be included in the initial proposal. Each party receiving such proposals shall elect by delivery of notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party not electing within the time required shall be deemed not to have voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such result to all parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, if a drilling rig is on locationlocation ). Each party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such notice to elect by delivery of notice to Operator to participate in such operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2.; failure by a party to deliver notice within such period shall be deemed an election not to participate in the prevailing proposal.

Order of Preference of Operations. Except as otherwise specifically provided in this Agreementagreement, if any party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party under this Article VI, such party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such operation is to be conducted, to deliver to all parties entitled to participate in the proposed operation such party’s alternative proposal, such alternate proposal to contain the same information required to be included in the initial proposal. Each party receiving such proposals shall elect by delivery of notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party not electing within the time required shall be deemed not to have voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such result to all parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, hours if a drilling rig is on location). Each party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such notice to elect by delivery of notice to Operator to participate in such operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2.; failure by a party to deliver notice within such period shall be deemed an election not to participate in the prevailing proposal.

Order of Preference of Operations. (a) Except as otherwise specifically provided in this Agreement, if any party Party desires to propose the conduct of an operation that conflicts will conflict with a an existing proposal that has been made by a party under this Article VIfor an Exclusive Operation, such party Party shall have fifteen the right exercisable for five (155) days from delivery of the initial proposal, in the case of a proposal to perform an operation on a well where no drilling rig is on locationDays, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidayshours if the drilling rig or seismic vessel to be used is standing by under contract in the Contract Area, from delivery receipt of the initial proposal, if a drilling rig is on location proposal for the well on which such operation is to be conductedExclusive Operation, to deliver to all parties Parties entitled to participate in the proposed operation such partyParty’s alternative proposal, such alternate . Such alternative proposal to shall contain the same information required to be included in the initial proposalunder Article 8.2(a). (b) Each party Party receiving such proposals shall elect by delivery of notice to Operator the Service Provider within five (5the appropriate response period set out in Article 8.2(b) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party Party not electing notifying the Operating Committee within the time required response period shall be deemed not to have votedvoted against the proposal. (c) The proposal receiving the vote of parties owning the largest aggregate percentage voting interest of the parties voting shall have priority over all other competing proposals; in . In the case of a tie vote, the initial proposal Operating Committee shall prevailchoose among the proposals receiving the largest aggregate voting interest. Operator The chairman of the Operating Committee shall deliver notice of such result to all parties Parties entitled to participate in the operation within five (5) days after expiration Days of the election period (end of the response period, or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, hours if a the drilling rig or seismic vessel to be used is on location)standing by under contract in the Contract Area. (d) Each party Party shall then have two (2) days Days (or twenty-four (24) hours if a the drilling rig or seismic vessel to be used is on locationstanding by under contract in the Contract Area) from receipt of such notice to elect by delivery of notice to Operator to the Service Provider whether such Party will participate in such operation Exclusive Operation, or to will relinquish its interest in the affected well pursuant to the provisions of Article VI.B.2.; failure 8.4(b). Failure by a party Party to deliver such notice within such period shall be deemed an election not to participate in the prevailing proposal.. (e) Notwithstanding the provisions of Article 8.4(b), if for reasons other than the encountering of granite or other practically impenetrable substance or any other condition encountered in the hole rendering further operations impracticable, a well drilled as an Exclusive Operation fails to reach the deepest objective Zone described in the notice proposing such well, the operator of such Exclusive Operation shall give notice of such failure to each Non-Consenting Party who submitted or voted for an alternative proposal under this Article 8.6 to drill such well to a shallower Zone than the deepest objective Zone proposed in the notice under which such well was drilled. Each such Non-Consenting Party shall have the option exercisable for forty-eight (48) hours from receipt of such notice to participate for its share in the initial proposed Completion of such well. Each such Non-Consenting Party may exercise such option by notifying the Service Provider that it wishes to participate in such Completion and by paying its share of the cost of drilling such well to its deepest depth drilled in the Zone in which it is completed. All liabilities and expenses for drilling and Testing the Exclusive Well below that depth shall be for the sole account of the Consenting Parties. If any such Non-Consenting Party does not properly elect to participate in the first Completion proposed for such well, the relinquishment provisions of Article 8.4(b) shall continue to apply to such Non-Consenting Party’s interest. 8.7 Stand-By Costs (a) When an operation has been performed, all tests have been conducted and the results of such tests furnished to the Parties, stand by costs incurred pending response to any Party’s notice proposing an Exclusive Operation for Deepening, Testing, Sidetracking, Completing, Plugging Back, Recompleting, Reworking or other further operation in such well (including the period required under Article 8.6 to resolve competing proposals) shall be charged and borne as part of the operation just completed. Stand by costs incurred subsequent to all Parties responding, or expiration of the response time permitted, whichever first occurs, shall be charged to and borne by the Parties proposing the Exclusive Operation, regardless of whether such Exclusive Operation is actually conducted. (b) If a further operation is proposed while the drilling rig or seismic vessel to be utilized is on location, any Party may request and receive up to five (5) additional Days after expiration of the applicable response period specified in Article 8.2(b) within which to respond by notifying the Operating Committee that such Party agrees to bear all stand by costs and other costs incurred during such extended response period. The Operating Committee may require such Party to pay the estimated stand by time in advance as a condition to extending the response period. 8.8 Special Considerations Regarding Deepening and Sidetracking (a) An Exclusive Well shall not be Deepened or Sidetracked without first affording the Non- Consenting Parties in accordance with this Article 8.8 the opportunity to participate in such operation. (b) In the event any Consenting Party desires to Deepen or Sidetrack an Exclusive Well, such Party shall initiate the procedure contemplated by Article 8.2. If a Deepening or Sidetracking operation is approved pursuant to such provisions and if any Non-Consenting Party to the Exclusive Well elects to participate in such Deepening or Sidetracking operation, such Non-Consenting Party shall not owe any Cash Premium and such Non-Consenting Party’s payment pursuant to Article 8.5(a) shall be such Non-Consenting Party’s share of the liabilities and expenses incurred in connection with drilling the Exclusive Well from the surface to the depth previously drilled which such Non-Consenting Party would have paid had such Non-Consenting Party agreed to participate in such Exclusive Well; provided, however, all liabilities and expenses for Testing and Completing or attempting Completion of the well incurred by Consenting Parties prior to the commencement of actual operations to Deepen or Sidetrack beyond the depth previously drilled shall be for the sole account of the Consenting Parties. 8.9

Order of Preference of Operations. 5.6 Except as otherwise specifically provided in this Agreement, if any party Party desires to propose the conduct of an operation that conflicts will conflict with a an existing proposal that has been made by a party under this Article VIfor an Exclusive Operation, such party Party shall have fifteen the right exercisable for five (155) days from delivery of the initial proposal, in the case of a proposal to perform an operation on a well where no drilling rig is on locationdays, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidayshours if the drilling rig to be used is standing by in the Contract Area, from delivery receipt of the initial proposal, if a drilling rig is on location proposal for the well on which such operation is to be conductedExclusive Operation, to deliver to all parties Parties entitled to participate in the proposed operation such party’s Party's alternative proposal, such alternate . Such alternative proposal to shall contain the same information required to be included in the initial proposalunder Section 5.2. Each party Party receiving such proposals shall elect by delivery of notice to Operator within five the appropriate response period set out in Sections 5.2(a) through (5c) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party Party not electing notifying Operator within the time required response period shall be deemed not to have voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting Participating Interest vote shall have priority over all other competing proposals; in . In the case of a tie vote, the initial proposal Operator shall prevailchoose among the proposals receiving the largest aggregate Participating Interest vote. Operator shall deliver notice of such result to all parties Parties entitled to participate in the operation within five (5) days after expiration of the election period (end of the response period, or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, hours if a the drilling rig to be used is on location)standing by in the Contract Area. Each party Party shall then have two (2) days (or twenty-four (24) hours if a the drilling rig to be used is on locationstanding by in the Contract Area) from receipt of such notice to elect by delivery of notice to Operator to whether such Party will participate in such operation Exclusive Operation, or to will relinquish its interest in the affected well pursuant to the provisions of Article VI.B.2.; failure Section 5.4(b). Failure by a party Party to deliver such notice within such period shall be deemed an election not to participate in the prevailing proposal.. STAND-BY COSTS

Order of Preference of Operations. Except as otherwise specifically provided in this Agreementagreement, if any party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party under this Article VI, VL such party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such operation is to be conducted, to deliver to all parties entitled to participate in the proposed operation such party’s 's alternative proposal, such alternate proposal to contain the same information required to be included in the initial proposal. Each party receiving such proposals shall elect by delivery of notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party not electing within the fee time required shall be deemed not to have voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such result to all parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, if a drilling rig is on location). Each party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such notice to elect by delivery of notice to Operator to participate in such operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2V1.B2.; failure by a party to deliver notice within such period shall be deemed an election not to participate in the prevailing prevailing: proposal.

Order of Preference of Operations. Except as otherwise specifically provided in this Agreement, if any party Party desires to propose the conduct of an operation that conflicts with a proposal that has been made by a party Party under this Article VI. (Drilling and Development), such party the Party shall have fifteen (15) days from delivery of the initial proposal, in the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, from delivery of the initial proposal, if a drilling rig is on location for the well on which such the operation is to be conducted, to deliver to all parties Parties entitled to participate in the proposed operation such partythe Party’s alternative proposal, such with the alternate proposal to contain the same information required to be included in the initial proposal. Each party Party receiving such the proposals shall elect elect, by delivery of delivering a notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party Party not electing within the time required shall be deemed not to have voted. The proposal receiving the vote of parties Parties owning the largest aggregate percentage interest of the parties Parties voting shall have priority over all other competing proposals; in the case of a tie vote, the initial proposal shall prevail. Operator shall deliver notice of such the result to all parties Parties entitled to participate in the operation within five (5) days after expiration of the election period (or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, if a drilling rig is on location). Each party Party shall then have two (2) days (or twenty-four (24) hours if a rig is on location) from receipt of such that notice to elect elect, by delivery of delivering a notice to Operator Operator, to participate in such the operation or to relinquish interest in the affected well pursuant to the provisions of Article VI.B.2.; failure by a party to deliver notice within such period shall be deemed an election not to participate in the prevailing proposal.. (