Resignation or Removal of Operator and Selection of Successor. 1. Resignation or Removal of Operator: Operator may resign at any time by giving written notice thereof to Non-Operators. If Operator terminates its legal existence, no longer own an interest hereunder in the Contract Area, or is no longer capable of serving as Operator, Operator shall be deemed to have resigned without any action by Non-Operators, except the selection of a successor. Operator may be removed only for good cause by the affirmative vote of on Non-Operators owning a majority interest based on ownership as shown on Exhibit “A”. Such vote shall not be deemed effective until a written notice has been delivered to the Operator by a Non-Operator detailing the alleged default and Operator has failed to cure the default within thirty (30) days from first receipt of the notice or, if the default concerns and operation then being conducted, within forty-eight (48) hours of its receipt of the notice. For purposes hereof, “good cause” shall mean not only gross negligence or willful misconduct but also the material breach or inability to meet the standards of operation contained in Article V.A or material failure or inability to perform its obligations under this Agreement. Subject to Article VII.D.1, such resignation or removal shall not become effective until 7:00 o’clock a.m. on the first day of the calendar month following the expiration of ninety (90) days after the giving of notice or resignation by Operator or action by the Non-Operators to remove Operator, unless a successor Operator has been selected and assumes the duties of Operator at an earlier date. Operator, after effective date of resignation or removal, shall be bound by the terms hereof as a Non-Operator. A change of a corporate name or structure of Operator or transfer of Operator’s interest to any single subsidiary, parent or successor corporation shall not be the basis for removal of Operator. Should the well or xxxxx being produced utilize gathering facilities owned by the outgoing operator, said xxxxx shall be shut-in until such time as new facilities are installed or a formal arrangement and agreement be made, with the outgoing operator, for the use of the existing facilities. Said shut-in may not be in contravention of or violate the ongoing requirements of said lease.
Resignation or Removal of Operator and Selection of Successor. (1) Operator may resign at any time by giving written notice to Non-Operators. If Operator terminates its legal existence, no longer owns an interest in the Contract Area subject to this Agreement, or is no longer capable of serving as Operator, Operator shall be deemed to have resigned without any action by Non-Operators, except the selection of a successor. Operator may be removed only for good cause shown and by the affirmative vote of Non-Operators owning a majority interest based on ownership as shown on Exhibit "A" remaining after excluding the voting interest of the Operator. Such vote shall not be deemed effective until a written notice has been delivered to the Operator by a Non-Operator detailing the alleged good cause for removal, and Operator has failed to cure such objections of the Non-Operators within sixty (60) days from Operator's receipt of such notice. For purposes hereof, "good cause" shall mean not only gross negligence or willful misconduct, but also the material breach of or inability to meet the standards of operation contained in Article V.A., or material failure or inability to perform Operator's obligations under this agreement. A change of corporate name or structure of Operator or transfer of Operator's Interest to any subsidiary, parent or successor corporation shall not be the basis for removal of Operator.
Resignation or Removal of Operator and Selection of Successor. Operator may resign at any time by giving written notice thereof to Non-Operators. If Operator terminates its legal existence, or is no longer capable of serving as Operator, Operator shall be deemed to have resigned without any action by Non-Operators, except the selection of a successor. Subject to Article V1LD.1, such resignation or removal shall not become effective until 7:00 o’clock A.M. on the first day of the calendar month following the expiration of ninety (90) days after the giving of notice of resignation by Operator unless a successor Operator has been selected and assumes the duties of Operator at an earlier date. Operator, after effective date of resignation shall be bound by the terms hereof as a Non-Operator.
Resignation or Removal of Operator and Selection of Successor. Operator may resign at any time by giving written notice of not less than sixty (60) days to Non-Operators. In such event, all parties to this agreement, including Operator if it owns an interest in the Contract Area, shall by written ballot select by a majority vote in interest, not in numbers, a new Operator who shall assume the responsibilities and duties on the date hereafter provided, and shall have the rights prescribed for Operator by this agreement. Operator shall deliver to its successor all records and information necessary to the discharge by the new Operator of its duties and obligations within five (5) business days after the receipt by Operator of a copy of the written ballots indicating that its successor has been duly chosen and a written acceptance by the successor of its responsibilities thereunder. Such acceptance shall contain a provision holding Operator harmless from all liability resulting from any acts performed in its capacity as Operator. Operator may be removed if it fails or refuses to carry out its duties hereunder, or becomes insolvent, bankrupt or is placed in receivership, by the affirmative vote of two (2) or more Non-Operators owning a majority interest based on ownership as shown on Annex "I" remaining after excluding the voting interest of Operator. Such resignation or removal shall become effective at 7:00 a.m. on the first day of the calendar month following the receipt by Operator of the written acceptance by its successor. In the event Operator should voluntarily resign while it continues to maintain an interest in the Contract Area, it shall be bound by the terms hereof as a Non-Operator.
Resignation or Removal of Operator and Selection of Successor
