Common use of Right to Substitute Well Locations Clause in Contracts

Right to Substitute Well Locations. Notwithstanding the provisions of sub-section (a) above, if the Operator or Developer determines in good faith, with respect to any Well Location, before operations begin under this Agreement on the Well Location, that it would not be in the best interest of the parties to drill a well on the Well Location, then the party making the determination shall notify the other party of its determination and its basis for its determination and, unless otherwise instructed by Developer, the well shall not be drilled. This determination may be based on: (i) the production or failure of production of any other xxxxx which may have been recently drilled in the immediate area of the Well Location; (ii) newly discovered title defects; or (iii) any other evidence with respect to the Well Location as may be obtained. If the well is not drilled, then Operator shall promptly propose a new well location (including all information for the Well Location as Developer may reasonably request) to be substituted for the original Well Location. Developer shall then have seven (7) business days to either reject or accept the proposed new well location. If the new well location is rejected, then Operator shall promptly propose another substitute well location pursuant to the provisions of this sub-section. Once the Developer accepts a substitute well location or does not reject it within said seven (7) day period, this Agreement shall terminate as to the original Well Location and the substitute well location shall become subject to the terms and conditions of this Agreement.

Right to Substitute Well Locations. Notwithstanding the provisions of sub-section (a) above, if the Operator or Developer determines in good faith, with respect to any Well Location, before operations begin under this Agreement on the Well Location, that it would not be in the best interest of the parties to drill a well on the Well Location, then the party making the determination shall notify the other party of its determination and its the basis for its determination and, unless otherwise instructed by Developer, the well shall not be drilled. This determination may be based on: (i) the production or failure of production of any other xxxxx which that may have been recently drilled in the immediate area of the Well Location; (ii) newly discovered title defects; or (iii) any other evidence with respect to the Well Location as may be have been obtained. If the well is not drilled, then Operator shall promptly propose a new well location (including all information for the Well Location as Developer may reasonably request) to be substituted for the original Well Location. Developer shall then have seven (7) business days to either reject or accept the proposed new well location. If the new well location is rejected, then Operator shall promptly propose another substitute well location pursuant to the provisions of this sub-section. Once the Developer accepts a substitute well location or does not reject it within said the seven (7) day period, this Agreement shall terminate as to the original Well Location and the substitute well location shall become subject to the terms and conditions of this Agreement.

Right to Substitute Well Locations. Notwithstanding the provisions of sub-section (a) above, if the Operator or Developer determines in good faith, with respect to any Well Location, before operations begin under this Agreement on the Well Location, that it would not be in the best interest of the parties to drill a well on the Well Location, then the party making the determination shall notify the other party of its determination and its the basis for its determination and, unless otherwise instructed by Developer, the well shall not be drilled. This determination may be based on: (i) the production or failure of production of any other xxxxx which wxxxx that may have been recently drilled in the immediate area of the Well Location; (ii) newly discovered title defects; or (iii) any other evidence with respect to the Well Location as may be have been obtained. If the well is not drilled, then Operator shall promptly propose a new well location Well Location (including all information for the Well Location as Developer may reasonably request) to be substituted for the original Well Location. Developer shall then have seven (7) business days to either reject or accept the proposed new well locationWell Location. If the new well location Well Location is rejected, then Operator shall promptly propose another substitute well location Well Location pursuant to the provisions of this sub-section. Once the Developer accepts a substitute well location Well Location or does not reject it within said the seven (7) day period, this Agreement shall terminate as to the original Well Location and the substitute well location Well Location shall become subject to the terms and conditions of this Agreement.

Right to Substitute Well Locations. Notwithstanding the provisions of sub-section (a) above, if the Operator or Developer determines in good faith, with respect to any Well Location, before operations begin under this Agreement on the Well Location, that it would not be in the best interest of the parties to drill a well on the Well Location, then the party making the determination shall notify the other party of its determination and its the basis for its determination and, unless otherwise instructed by Developer, the well shall not be drilled. This determination may be based on: (i) the production or failure of production of any other xxxxx which wxxxx that may have been recently drilled in the immediate area of the Well Location; (ii) newly discovered title defects; or (iii) any other evidence with respect to the Well Location as may be have been obtained. If the well is not drilled, then Operator shall promptly propose a new well location (including all information for the Well Location as Developer may reasonably request) to be substituted for the original Well Location. Developer shall then have seven (7) business days to either reject or accept the proposed new well location. If the new well location is rejected, then Operator shall promptly propose another substitute well location pursuant to the provisions of this sub-section. Once the Developer accepts a substitute well location or does not reject it within said the seven (7) day period, this Agreement shall terminate as to the original Well Location and the substitute well location shall become subject to the terms and conditions of this Agreement.