Common use of Renewal or Extension of Leases Clause in Contracts

Renewal or Extension of Leases. If any Party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreement, then all other parties shall be notified promptly on the acquisition or, in the case of a replacement Lease taken before expiration of an existing Lease, promptly on expiration of the existing Lease. The parties notified shall have the right for a period of thirty (30) days following delivery of the notice in which to elect to participate in the ownership of the renewal or replacement Lease, insofar as the Lease affects lands within the Contract Area, by paying to the Party who acquired it their proportionate shares of the acquisition cost allocated to that part of the Lease within the Contract Area, which shall be in proportion to the interests held at that time by the parties in the Contract Area. Each Party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease by the acquiring Party. If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties who elect to participate in the purchase, in a ratio based on the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all parties participating in the purchase of renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties shall not cause a readjustment of the interests of the parties stated in Exhibit “A,” but any renewal or replacement Lease in which less than all parties elect to participate shall not be subject to this agreement but shall be deemed subject to a separate Operating Agreement in the form of this agreement. If the interests of the parties in the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those depth variances. The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring Lease or cover only a portion of its area or an interest in it. Any renewal or replacement Lease taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, shall be subject to this provision so long as this agreement is in effect at the time of the acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six (6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of this agreement. The provisions in this Article shall also be applicable to extensions of Oil and Gas Leases.

Renewal or Extension of Leases. If any Party party secures a renewal or replacement of an Oil any oil and Gas Lease or Interest gas lease subject to this agreement, then all other parties shall be notified promptly on the acquisition orpromptly, in the case of a replacement Lease taken before expiration of an existing Lease, promptly on expiration of the existing Lease. The parties notified and shall have the right for a period of thirty (30) days following delivery receipt of the such notice in which to elect to participate in the ownership of the renewal or replacement Leaselease, insofar as the Lease such lease affects lands within the Contract AreaAreal, by paying to the Party party who acquired it their several proper proportionate shares of the acquisition cost allocated to that part of the Lease such lease within the Contract Area, which shall be in proportion to the interests held at of that time by the parties in the Contract Area. Each Party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease by the acquiring Party. If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement Leaselease, it shall be owned by the parties who elect to participate in the purchasetherein, in a ratio based on upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all parties participating in the purchase of such renewal or replacement Leaselease. The acquisition of a Any renewal or replacement Lease by any or all of the parties shall not cause a readjustment of the interests of the parties stated in Exhibit “A,” but any renewal or replacement Lease in lease to which less than all parties elect to participate shall not be subject to this agreement but agreement. Each party who participates in the purchase of a renewal lease shall be deemed subject to a separate Operating Agreement in the form of this agreement. If the interests of the parties in the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive given an assignment of its proportionate interest shall also reflect those depth variancestherein by the acquiring party. The provisions provision of this Article shall apply to renewal or replacement Leases leases whether they are for the entire interest covered by the expiring Lease lease or cover only a portion of its area or an interest in ittherein. Any renewal or replacement Lease lease taken before the expiration of its predecessor Leaselease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, lease shall be subject to this provision so long as this agreement is in effect at the time of the acquisition or at the time the renewal or replacement Lease becomes effectiveprovision; but any Lease lease taken or contracted for more than six (6) months after the expiration of an existing Lease lease shall not be deemed a renewal or replacement Lease lease and shall not be subject to the provisions of this agreement. The provisions in this Article shall also be applicable to extensions of Oil oil and Gas Leasesgas leases.

Renewal or Extension of Leases. If any Party party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreement, then all other parties shall be notified promptly on the acquisition or, in the case of a replacement Lease taken before expiration of an existing Lease, promptly on expiration of the existing Lease. The parties notified shall have the right for a period of thirty (30) days following delivery of the notice in which to elect to participate in the ownership of the renewal or replacement Lease, insofar as the Lease affects lands within the Contract Area, by paying to the Party party who acquired it their proportionate shares of the acquisition cost allocated to that part of the Lease within the Contract Area, which shall be in proportion to the interests held at that time by the parties in the Contract Area. Each Party party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease by the acquiring Partyparty. If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties who elect to participate in the purchase, in a ratio based on the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all parties participating in the purchase of renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties shall not cause a readjustment of the interests of the parties stated in Exhibit “A,” but any renewal or replacement Lease in which less than all parties elect to participate shall not be subject to this agreement Agreement but shall be deemed subject to a separate Operating Agreement in the form of this agreementAgreement. If the interests of the parties in the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those depth variances. The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring Lease or cover only a portion of its area or an interest in it. Any renewal or replacement Lease taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, shall be subject to this provision so long as this agreement Agreement is in effect at the time of the acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six (6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of this agreementAgreement. The provisions in this Article shall also be applicable to extensions of Oil and Gas Leases.

Renewal or Extension of Leases. If any Party party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreement, then all other parties shall be notified promptly on the upon such acquisition or, in the case of a replacement Lease taken before expiration of an existing Lease, promptly on upon expiration of the existing Lease. The parties notified shall have the right for a period of thirty (30) days following delivery of the such notice in which to elect to participate in the ownership of the renewal or replacement Lease, insofar as the such Lease affects lands within the Contract Area, by paying to the Party party who acquired it their proportionate shares of the acquisition cost allocated to that part of the such Lease within the Contract Area, which shall be in proportion to the interests interest held at that time by the parties in the Contract Area. Each Party party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease therein by the acquiring Partyparty. If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties who elect to participate in the purchasetherein, in a ratio based on upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all parties participating in the purchase of such renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties hereto shall not cause a readjustment of the interests of the parties stated in Exhibit “A,” but any renewal or replacement Lease in which less than all parties elect to participate shall not be subject to this agreement but shall be deemed subject to a separate Operating Agreement in the form of this agreement. If the interests of the parties in the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those such depth variances. The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring Lease or cover only a portion of its area or an interest in ittherein. Any renewal or replacement Lease taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, shall be subject to this provision so long as this agreement is in effect at the time of the such acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six (6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of this agreement. The provisions in this Article shall also be applicable to extensions of Oil and Gas Leases.

Renewal or Extension of Leases. If any Party party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreement, then all other parties shall be notified promptly on the upon such acquisition or, in the case of a replacement Lease taken before expiration of an existing Lease, promptly on upon expiration of the existing Lease. The parties notified shall have the right for a period of thirty (30) days following delivery of the such notice in which to elect to participate in the ownership of the renewal or replacement Lease, insofar as the such Lease affects lands within the Contract Area, by paying to the Party party who acquired it their proportionate shares of the acquisition cost allocated to that part of the such Lease within the Contract Area, which shall be in proportion to the interests interest held at that time by the parties in the Contract Area. Each Party party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease therein by the acquiring Partyparty. If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties who elect to participate in the purchasetherein, in a ratio based on upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all parties participating in the purchase of such renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties hereto shall not cause a readjustment of the interests of the parties stated in Exhibit “"A,” " but any renewal or replacement Lease in which less than all parties elect to participate shall not be subject to this agreement but shall be deemed subject to a separate Operating Agreement in the form of this agreement. If the interests of the parties in the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those such depth variances. The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring Lease or cover only a portion of its area or an interest in ittherein. Any renewal or replacement Lease taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, shall be subject to this provision so long as this agreement is in effect at the time of the such acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six (6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of o this agreement. The provisions in this Article shall also be applicable to extensions of Oil and Gas Leases.

Renewal or Extension of Leases. If any Party the Operator or other party subject hereto secures a renewal or replacement of an Oil any oil and Gas Lease or Interest gas lease subject to this agreement, then all other parties it shall be notified promptly on for the acquisition or, in joint account of all the case of a replacement Lease taken before expiration of an existing Lease, promptly on expiration of the existing Lease. The parties notified shall have the right for a period of thirty (30) days following delivery of the notice in which to elect to participate in the ownership of the renewal or replacement LeaseDrilling Parties, insofar as the Lease such lease affects lands within the Contract Area, by paying subject to the Party who acquired it right of Operator or other party to secure a lien and security interest on the oil and gas rights and production resulting therefrom of each Non-Operator in the Contract Area pending the reimbursement by each Non-Operator of their proportionate shares share of the lease acquisition cost costs allocated to that part of the Lease such lease within the Contract Area, Area which shall be in proportion to the interests held at that time by the parties in the Contract Area. Each Party Non-Operator who participates in the purchase of a renewal or replacement Lease lease in accordance with this agreement shall be given an assignment of its proportionate interest in that lease therein by the acquiring Party. If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties who elect to participate in the purchase, in a ratio based on the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all parties participating in the purchase of renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties shall not cause a readjustment of the interests of the parties stated in Exhibit “A,” but any renewal or replacement Lease in which less than all parties elect to participate shall not be subject to this agreement but shall be deemed subject to a separate Operating Agreement in the form of this agreement. If the interests of the parties in the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those depth variancesparty. The provisions of this Article shall apply to the renewal or replacement Leases extension of leases whether they are for the entire interest covered by the expiring Lease lease or cover only a portion of its area or an interest in ittherein. Any renewal or replacement Lease extension lease taken before the expiration of its predecessor Leaselease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, lease shall be subject to this provision so long as this agreement is in effect at the time of the acquisition or at the time the renewal or replacement Lease becomes effectiveprovision; but any Lease lease taken or contracted for more than six (6) months after the expiration of an existing Lease lease shall not be deemed a renewal or replacement Lease lease and shall not be subject to t the provisions of this agreementAgreement. The provisions However, a renewal or extension secured within one (1) year from the expiration of the existing lease shall be subject to this provision if the delay in securing such renewal or extension was done by Operator with the intent of avoiding his obligations under this Article shall also be applicable to extensions of Oil and Gas LeasesArticle.

Renewal or Extension of Leases. If any Party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreement, then all other parties Parties shall be notified promptly on the upon such acquisition or, in the case ease of a replacement Lease taken before expiration of an existing Lease, promptly on upon expiration of the existing Lease. The parties Parties notified shall have the right for a period of thirty (30) days following delivery of the such notice in which to elect to participate in the ownership of the renewal or replacement Lease, insofar as the such Lease affects lands within the Contract Area, by paying to the Party who acquired it their proportionate shares of the acquisition cost allocated to that part of the such Lease within the Contract Area, which shall be in proportion to the interests interest held at that time by the parties Parties in the Contract Area. Each Party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease therein by the acquiring Party, without warranty of title, except as to acts by, through or under the acquiring Party. If some, but less than all, of the parties Parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties Parties who elect to participate in the purchasetherein, in a ratio based on upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all parties Parties participating in the purchase of such renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties Parties shall not cause a readjustment of the interests of the parties Parties stated in Exhibit “"A,” ", but any renewal or replacement Lease in which less than all parties Parties elect to participate shall not be subject to this agreement but shall be deemed subject to a separate Operating Agreement in the form of this agreement. If the interests of the parties in the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those depth variances. The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring Lease or cover only a portion of its area or an interest in it. Any renewal or replacement Lease taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, shall be subject to this provision so long as this agreement is in effect at the time of the acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six (6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of this agreement. The provisions in this Article shall also be applicable to extensions of Oil and Gas Leases.OPERATING AGREEMENT

Renewal or Extension of Leases. If any Party party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreement, then all other parties shall be notified promptly on the upon such acquisition or, in the case of a replacement Lease taken before expiration of an existing Lease, promptly on upon expiration of the existing Lease. The parties notified shall have the right for a period of thirty (30) days following delivery of the such notice in which to elect to participate in the ownership of the renewal or replacement Leaselease, insofar as the such Lease affects lands within the Contract Area, by paying to the Party party who acquired it their proportionate shares of the acquisition cost allocated to that part of the such Lease within the Contract Area, which shall be in proportion to the interests held at that time by the parties in the Contract Area. Each Party party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease therein by the acquiring Partyparty. If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties who elect to participate in the purchasetherein, in a ratio based on upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all parties participating in the purchase of such renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties hereto shall not cause a readjustment of the interests of the parties stated in Exhibit “A,” ”, but any renewal or replacement Lease in which less than all parties elect to participate shall not be subject to this agreement but shall be deemed subject to a separate Operating Agreement in the form of this agreement. If the interests of the parties in the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those such depth variances. The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring Lease or cover only a portion of its area or an interest in ittherein. Any renewal or replacement Lease taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, shall be subject to this provision so long as this agreement is in effect at the time of the such acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six (6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of this agreement. The provisions in of this Article shall also be applicable to extensions of Oil and Gas Leases.

Renewal or Extension of Leases. If any Party party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreement, then all other parties shall be notified promptly on the upon such acquisition or, in the case of a replacement Lease taken before expiration of an existing Lease, promptly on upon expiration of the existing Lease. The parties notified shall have the right for a period of thirty (30) days following delivery of the such notice in which to elect to participate in the ownership of the renewal or replacement Lease, insofar as the such Lease affects lands within the Contract Area, by paying to the Party party who acquired it their proportionate shares of the acquisition cost allocated to that part of the such Lease within the Contract Area, which shall be in proportion to the interests held at that time by the parties in the Contract Area. Each Party party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease therein by the acquiring Partyparty. If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties who elect to participate in the purchasetherein, in a ratio based on upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all parties participating in the purchase of such renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties hereto shall not cause a readjustment of the interests of the parties stated in Exhibit “A,” ”, but any renewal or replacement Lease in which less than all parties elect to participate shall not be subject to this agreement but shall be deemed subject to a separate Operating Agreement in the form of this agreement. If the interests of the parties in the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those such depth variances. The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring Lease or cover only a portion of its area or an interest in ittherein. Any renewal or replacement Lease taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, shall be subject to this provision so long as this agreement is in effect at the time of the such acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six (6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of this agreement. The provisions in this Article shall also be applicable to extensions of Oil and Gas Leases.

Renewal or Extension of Leases. If any Party party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreement, then all other parties shall be notified promptly on the upon such acquisition or, in the case of a replacement Lease taken before expiration of an existing Lease, promptly on upon expiration of the existing Lease. The parties notified shall have the right for a period of thirty (30) days following delivery of the such notice in which to elect to participate in the ownership of the renewal or replacement Lease, insofar as the such Lease affects lands within the Contract AreaArea of Mutual Interest, by paying to the Party party who acquired it their proportionate shares of the acquisition cost allocated to that part of the such Lease within the Contract AreaArea of Mutual Interest, which shall be in proportion to the interests interest held at that time by the parties in the Contract AreaArea of Mutual Interest. Each Party party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease therein by the acquiring Partyparty. If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties who elect to participate in the purchasetherein, in a ratio based on upon the relationship of their respective percentage of participation in the Contract Area of Mutual Interest to the aggregate of the percentages of participation in the Contract Area of Mutual Interest of all parties participating in the purchase of such renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties hereto shall not cause a readjustment of the interests of the parties stated in Exhibit “"A,” " but any renewal or replacement Lease in which less than all parties elect to participate shall not be subject to this agreement but shall be deemed subject to a separate Operating Agreement in the form of this agreement. If the interests of the parties in the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those depth variances. The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring Lease or cover only a portion of its area or an interest in ittherein. Any renewal or replacement Lease base taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, shall be subject to this provision so long as this agreement is in effect at the time of the such acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six (6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of this agreement. The provisions in this Article shall also be applicable to extensions of Oil and Gas Leases.

Renewal or Extension of Leases. If any Party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreementAgreement, then all other parties Parties shall be promptly notified promptly on of the acquisition or, in the case of a replacement Lease taken before expiration of an existing Lease, promptly on expiration of the existing Lease. The parties Parties notified shall have the right for a period of thirty (30) days following delivery of the notice in which to elect to participate in the ownership of the renewal or replacement Lease, insofar as the Lease affects lands within the Contract Area, by paying to the Party who acquired it their proportionate shares of the acquisition cost allocated to that part of the Lease within the Contract Area, which shall be in proportion to the interests held at that time by the parties Parties in the Contract Area. Each Party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease it by the acquiring Party. If some, but less than all, of the parties Parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties Parties, who elect to participate in the purchaseparticipate, in a ratio based on the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all parties Parties participating in the purchase of the renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties Parties shall not cause a readjustment of the interests of the parties Parties stated in Exhibit “A,” but any renewal or replacement Lease in which less than all parties Parties elect to participate shall not be subject to this agreement Agreement but shall be deemed subject to a separate Operating Agreement in the form of this agreementAgreement. If the interests of the parties Parties in the Contract Area vary according to depth, then their right to participate proportionately in any renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those depth variances. The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring Lease or cover only a portion of its area or an interest in itthe area. Any renewal or replacement Lease taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, shall be subject to this provision so long as this agreement Agreement is in effect at the time of the acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six (6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of this agreementAgreement. The provisions in this Article shall also be applicable to extensions of Oil and Gas Leases.

Renewal or Extension of Leases. If any Party party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreementAgreement, then all other parties shall be notified promptly on the upon such acquisition or, in the case of a replacement Lease taken before expiration of an existing Lease, promptly on upon expiration of the existing Lease. The parties notified shall have the right for a period of thirty (30) days following delivery of the such notice in which to elect to participate in the ownership of the renewal or replacement Lease, insofar as the such Lease affects lands within the Contract Area, by paying to the Party party who acquired it their proportionate shares of the acquisition cost allocated to that part of the such Lease within the Contract Area, which shall be in proportion to the interests held at that time by the given parties in the Contract Area. Each Party party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease therein by the acquiring Partyparty. If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties who elect to participate in the purchasetherein, in a ratio based on upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages percentage of participation in the Contract Area of all parties participating in the purchase of such renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties hereto shall not cause a readjustment of the interests of the parties stated in Exhibit “A,” ”, but any renewal or replacement Lease lease in which less than all parties elect to participate shall not be subject to this agreement Agreement but shall be deemed subject to a separate Operating Agreement in the form of this agreementAgreement. If the interests of the parties in the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those such depth variances. The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring Lease or cover only a portion of its area or an interest in ittherein. Any renewal or replacement Lease taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, shall be subject to this provision so long as this agreement Agreement is in effect at the time of the such acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six (6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of this agreementAgreement. The provisions in this Article shall also be applicable to extensions of Oil and Gas LeasesLease.

Renewal or Extension of Leases. If any Party party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreement, then all other parties shall be notified promptly on the upon such acquisition or, in the case of a replacement Lease taken before expiration of an existing Lease, promptly on upon expiration of the existing Lease. The parties notified shall have the right for a period of thirty (30) days following delivery of the such notice in which to elect to participate in the ownership of the renewal or replacement Lease, insofar as the such Lease affects lands within the Contract Area, by paying to the Party party who acquired it their proportionate shares of the acquisition cost allocated to that part of the such Lease within the Contract Area, which shall be in proportion to the interests interest held at that time by the parties in the Contract Area. Each Party party who participates in the purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest in that lease therein by the me acquiring Partyparty. If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement Lease, it shall be owned by the parties who elect to participate in the purchasetherein, in a ratio based on upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all parties participating in the purchase of such renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties hereto shall not cause a readjustment of the interests of the parties stated in Exhibit “A,” but any renewal or replacement Lease in which less than all parties elect to participate shall not be subject to this tins agreement but shall be deemed subject to a separate Operating Agreement in m the form of this agreement. agreement If the interests of the parties in m the Contract Area vary according to depth, then their right to participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect those such depth variances. The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring Lease or cover only a portion of its area or an interest in it. Any renewal or replacement Lease taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration of the existing Lease, shall be subject to this provision so long as this agreement is in effect at the time of the acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six (6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of this agreement. The provisions in this Article shall also be applicable to extensions of Oil and Gas Leases.