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 drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, 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 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 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 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, 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 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 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 agreementAgreement, 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 drill a well or to perform an operation on a well where no drilling rig is on locationDays, or twenty-four (24) hourshours 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 proposal. under Article 7.2(A). (B) Each party Party receiving such proposals shall elect by delivery of notice to Operator within five (5the appropriate response period set out in Article 7.2(B) days after expiration of the proposal period, or within twenty-four (24) hours 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. voted against the proposal. (C) 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 Days of the election period (end of the response period, or within twenty-four (24) hours if a the drilling rig to be used is on location). standing by 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 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 7.4(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.

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. (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, 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 party's the 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 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 hours, 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.. (

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 drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, 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 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 the A. A.P.L. FORM 610 — MODEL FORM OPERATING AGREEMENT- 1989 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 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 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 drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, 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 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 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 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.