Common use of Pressure Communication Restriction Clause in Contracts

Pressure Communication Restriction. Notwithstanding anything herein to the contrary in this Agreement or any other agreement entered into pursuant to this Agreement, any productive sand interval encountered in any well drilled or caused to be drilled by the Parties under this Agreement that is in a Reservoir or pressure communication with a productive sand interval that is producing or is capable of producing from or behind pipe in an existing well in paying quantities from such sand interval drilled on a lease(s) by Chevron is excluded from this Agreement and specifically reserved by Chevron. If at any time a Party proposes to drill a well which could encounter a sand interval(s) which could potentially be in a Reservoir or pressure communication with a productive sand interval(s) that is producing or capable of producing in or behind pipe in an existing well as described above, prior to drilling such well Chevron and Company will establish the criteria for determining whether the well once drilled would be in a Reservoir or pressure communication. In the event the Parties drill a well and encounter a sand interval(s) not originally anticipated to contain hydrocarbons in paying quantities but, upon review by either Party is believed to potentially be in a Reservoir or pressure communication with a productive sand interval(s) that is producing or capable of producing in or behind pipe in an existing well as described above, then upon determination that such sand interval(s) could potentially be in a Reservoir or pressure communication, the Parties hereto will meet as soon as reasonably possible to establish the criteria for determining whether or not the well in question is actually in a Reservoir or pressure communication. In the event there is a disagreement between Chevron and Company as to whether or not a Chevron well and/or interval(s) is potentially in a Reservoir or pressure communication with the new well and/or interval(s), then within ninety (90) days after rig release from such well, Chevron and Company will furnish all available geological, geophysical and engineering data, including bottom hole pressure data and Reservoir characteristics, to an engineering firm approved by Chevron to determine, with reasonable confidence, whether a Reservoir or pressure communication does or does not exist between the wells. The decision of the engineering firm will be final and bindinx xx the Parties hereto. The cost of the work performed by the engineering firm will be shared between Chevron and Company, at the ACP Interests.

Pressure Communication Restriction. Notwithstanding anything herein to the contrary in this Agreement or any other agreement entered into pursuant to this Agreementcontrary, any productive sand interval encountered in any well drilled or caused to be drilled by the Parties under this Agreement that is in a Reservoir or pressure communication with a productive sand interval that is producing or is capable of producing from or behind pipe in an existing well in paying quantities from such sand interval drilled on a lease(s) Lease by Chevron is or a Co-Working Interest Owners shall be excluded from this Agreement and specifically reserved by Chevron. If at any time a Party proposes to drill a well which could encounter a sand interval(s) which could potentially be in a Reservoir or pressure communication with a productive sand interval(s) that is producing or capable of producing in or behind pipe in an existing well as described above, prior to drilling such well Chevron and Company Ridgewood will establish the criteria for determining whether the well once drilled would be in a Reservoir or pressure communication. In the event the Parties drill a well and encounter a sand interval(s) not originally anticipated to contain hydrocarbons in paying quantities but, upon review by either Party is believed to potentially be in a Reservoir or pressure communication with a productive sand interval(s) that is producing or capable of producing in or behind pipe in an existing well as described above, then upon determination that such sand interval(s) could potentially be in a Reservoir or pressure communication, the Parties hereto will shall meet as soon as reasonably possible to establish the criteria for determining whether or not the well in question is actually actually, in a Reservoir or pressure communication. In the event there is a disagreement between Chevron and Company Ridgewood as to whether or not a Chevron well and/or interval(s) is potentially in a Reservoir or pressure communication with the new well and/or interval(s), then within ninety one hundred eighty (90180) days after rig release from such well, Chevron and Company will Ridgewood shall furnish all available geological, geophysical and engineering data, including bottom hole pressure data and Reservoir characteristics, to an a mutually acceptable engineering firm approved by Chevron to determine, with reasonable confidence, whether a Reservoir or pressure communication does or does not exist between the wells. The decision of the engineering firm will shall be final and bindinx bindixx xx the Parties hereto. The cost of the work performed by the engineering firm will shall be shared between Chevron and CompanyRidgewood, at the ACP Interests. In the event the only sand interval(s) capable of producing hydrocarbons in commercial quantities discovered in a well drilled by the Parties is in a Reservoir or pressure communication with one or more sand interval(s) producing or capable of producing from Chevron's well(s) on a Chevron Lease, and the well has no further utility for options on the Prospect as agreed to by the Parties, then Chevron will have the option to take over the well. If Chevron exercises this option by giving Ridgewood written notice, Ridgewood shall be entitled to a Well Cost adjustment for that portion of the wellbore associated with the drilling, completing and equipping the well from the surface down to the base of the Reservoir in pressure communication with the other well. All costs and expenses paid by Ridgewood for the drilling of the well down to the base of said Reservoir, along with all costs and expenses paid by Ridgewood, if any, in completing and equipping the well for the Reservoir in pressure communication, shall be reimbursed to Ridgewood by Chevron in an equitable manner, as agreed by the Parties, based on the value and allocation recommended in the applicable COPAS guidelines, as amended from time to time.

Pressure Communication Restriction. Notwithstanding anything herein to the contrary in this Agreement or any other agreement entered into pursuant to this Agreementcontrary, any productive sand interval encountered in any well drilled or caused to be drilled by the Parties under this Agreement that is in a Reservoir or pressure communication with a productive sand interval that is producing or is capable of producing from or behind pipe in an existing well in paying quantities from such sand interval drilled on a lease(s) Lease by Chevron is or a Co-Working Interest Owners shall be excluded from this Agreement and specifically reserved by Chevron. If at any time a Party proposes to drill a well which could encounter a sand interval(s) which could potentially be in a Reservoir or pressure communication with a productive sand interval(s) that is producing or capable of producing in or behind pipe in an existing well as described above, prior to drilling such well Chevron and Company Ridgewood will establish the criteria for determining whether the well once drilled would be in a Reservoir or pressure communication. In the event the Parties drill a well and encounter a sand interval(s) not originally anticipated to contain hydrocarbons in paying quantities but, upon review by either Party is believed to potentially be in a Reservoir or pressure communication with a productive sand interval(s) that is producing or capable of producing in or behind pipe in an existing well as described above, then upon determination that such sand interval(s) could potentially be in a Reservoir or pressure communication, the Parties hereto will shall meet as soon as reasonably possible to establish the criteria for determining whether or not the well in question is actually actually, in a Reservoir or pressure communication. In the event there is a disagreement between Chevron and Company Ridgewood as to whether or not a Chevron well and/or interval(s) is potentially in a Reservoir or pressure communication with the new well and/or interval(s), then within ninety one hundred eighty (90180) days after rig release from such well, Chevron and Company will Ridgewood shall furnish all available geological, geophysical and engineering data, including bottom hole pressure data and Reservoir characteristics, to an a mutually acceptable engineering firm approved by Chevron to determine, with reasonable confidence, whether a Reservoir or pressure communication does or does not exist between the wells. The decision of the engineering firm will shall be final and bindinx bindixx xx the Parties hereto. The cost of the work performed by the engineering firm will shall be shared between Chevron and CompanyRidgewood, at the ACP Interests. In the event the only sand interval(s) capable of producing hydrocarbons in commercial quantities discovered in a well drilled by the Parties is in a Reservoir or pressure communication with one or more sand interval(s) producing or capable of producing from Chevron's well(s) on a Chevron Lease, and the well has no further utility for options on the Prospect as agreed to by the Parties, then Chevron will have the option to take over the well. If Chevron exercises this option by giving Ridgewood written notice, Ridgewood shall be entitled to a Well Cost adjustment for that portion of the wellbore associated with the drilling, completing and equipping the -yell from the surface down to the base of the Reservoir in pressure communication with the other well. All costs and expenses paid by Ridgewood for the drilling of the well down to the base of said Reservoir, along with all costs and expenses paid by Ridgewood, if any, in completing and equipping the well for the Reservoir in pressure communication, shall be reimbursed to Ridgewood by Chevron in an equitable manner, as agreed by the Parties, based on the value and allocation recommended in the applicable COPAS guidelines, as amended from time to time.