Saltwater Disposal and Infrastructure Costs Sample Clauses

Saltwater Disposal and Infrastructure Costs. Participants shall prepay, to NDL, its Proportionate Share of the Turnkey Saltwater Disposal costs attributable to each New Well for the purpose of acquiring saltwater disposal rights relative to the operation of each New Well in the amount of Three Hundred Thousand ($300,000) dollars. NDL reserves the right to increase this amount in increments of $25,000.00 per well per year in the event of increased costs of drilling equipment and services on saltwater disposal xxxxx and/or upon the discovery of productive Xxxxxxxx formation when drilling the disposal well. In the event Saltwater Disposal Costs are increased, NDL will providing an accounting reflecting the reasons for the increase of Saltwater Disposal Costs upon written request of a Participant. Participants shall be responsible for their Proportionate Share of operational costs, upkeep, repair, replacement, maintenance and chemical treatment of disposal xxxxx. Participants acknowledge that they will not acquire ownership of saltwater disposal xxxxx, pipelines, or equipment relating to saltwater disposal as a result of the payment of saltwater disposal fees, which shall remain solely owned by NDL. All amounts due by each Participant pursuant to this Section II.A.2 shall be incorporated in the AFE for the applicable New Well and paid in accordance with the terms of the Operating Agreement. Each Participant also agrees to pay its Proportionate Share of oil, gas, water and electrical infrastructure installed as necessary by NDL for the Project Area. NDL will xxxx any amounts incurred for such infrastructure costs on a quarterly basis. Participants recognize that such infrastructure shall remain the property of NDL and they will have no ownership interest therein, beneficial or otherwise.
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Saltwater Disposal and Infrastructure Costs 
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Related to Saltwater Disposal and Infrastructure Costs

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