Production Handling Option Sample Clauses

Production Handling Option. The basic terms of production handling agreements will not be a part of this Agreement but the Parties agree that it is the general intention of the Parties to independently and in good faith evaluate the use of existing, nearby sole ownership facilities of Chevron, if any and where appropriate, for the handling of Prospect production from successful Prospect wells; however, neither party is committed to bring its share of Prospect production to a Party's nearby sole ownership facility or to accept production at a Party's nearby sole ownership facility. The Parties will negotiate any such use in good faith, where the Parties see mutual benefit to such use; however, the use of an Existing Facility, or near by facility, will require the consent of both Parties to all terms and condition of such use prior to such use.

Production Handling Option. Texaco, as an accommodation to McMoRan, will consider handling production resulting from any well drilled by McMoRan on any acreage farmed out or subleased at Texaco's facilities (if excess capacity exists) located in the vicinity of any acreage earned by McMoRan pursuant to any Farmout Agreement or Sublease. McMoRan will have the option to enter into an agreement with Texaco to handle its production attributable to any Prospects earned by paying reasonable and customary fees for the services provided. A production handling agreement will be negotiated by the Parties in the event one is needed and if the Parties mutually agree to pursue Texaco handling McMoRan's production.