Subsequent Xxxxx. 21.01 If the First Well drilled by Lessee, or any subsequent well, is productive of oil and/or gas, and the well is expected to return the investment and operating costs on that well during the anticipated productive life of the well to its economic limit, then Lessee shall drill an additional well on the leased premises or on a unit containing a portion of the leased premises, but not necessarily on the portion of the leased premises contained within the unit, if such a well would be drilled by an ordinary prudent operator acting under the same or similar circumstances. If Lessee concludes an additional well is not justified, then Lessee shall submit to Department the information upon which its conclusion is based. If upon review of such information, Department determines that an additional well should be drilled, then Lessee shall have the option of drilling an additional well within two (2) years from Department’s determination or releasing all of the acreage covered by the lease except for the following:
Subsequent Xxxxx. The Shipper may use the Shipper Installed Asset to gather any subsequent Xxxxx drilled with a surface location within a one (1) mile radius of the Rejected Well.
Subsequent Xxxxx. As to any subsequent xxxxx drilled within the Prospect area, the Participant has the option, but not the obligation, to participate in the drilling of such subsequent xxxxx by paying 12.5% of the costs and expenses of drilling such well including the cost of completing such subsequent well and equipping the same for production. Should a party not elect to participate in such subsequent well such non-participating Party will be subject to the provisions of Article VI section B of the JOA.
Subsequent Xxxxx. With regard to any Well (“Subsequent Well”) which is completed for production subsequent to the date of this Agreement, Seller shall, within thirty (30) days from the date of completion of such Subsequent Well, provide Buyer any and all relevant Well data (including, but not limited to daily drilling reports, logs, completion reports, flow test, and gas analysis) (“Well Data”). Seller shall have the right, but not the obligation, to connect such Subsequent Well to Seller or Buyer’s system at its expense. If Seller elects not to construct such facilities, or does not initiate construction of such facilities within thirty (30) days after the Well Data is received by Buyer. Buyer may construct, at its expense, the facilities necessary to deliver the Gas from such Subsequent Well to Buyer’s xxx system. If neither party connects any Subsequent Well, Seller shall be entitled to a xxx release from this Agreement as to that Subsequent Well only. The obligation to connect Subsequent Xxxxx shall only apply to all Xxxxx completed in the xxx formation and Xxxxx with similar characteristics or of better quality than gas produced from such formation.
Subsequent Xxxxx. In the event Penasco and Xxxxxx elect to participate or consent to a drilling proposal for drilling a Subsequent Well, such Subsequent Well will be drilled on the ownership basis of 3.00% Penasco whether or not the Initial Test Well has reached Payout. In the event such Subsequent Well is to be located on lands covered by the initial Assignment of Oil and Gas leases described in 2.1 (b) and Payout of the Initial Test Well has not been reached with ensuing Assignment to Xxxxxx, Penasco shall promptly, after the election by Xxxxxx to participate in the drilling of such Subsequent Well, assign to Xxxxxx 1.00% working interest in the Property and Property Interests comprising the drilling and spacing unit for such Subsequent Well.
Subsequent Xxxxx. For a newly proposed Subsequent Well, Producer shall provide a written request for Gatherer to connect a Well to the System that will include Producer’s best estimate of the date of first production for the specified Well (“Tie-in Request”). As soon as practicable, but no later than thirty (30) days from the date of the Tie-in Request, Gatherer will elect, by written notice to Producer, whether or not Gatherer will connect the Well. If Gatherer elects to connect the Well, Gatherer shall pay all of the costs related to such installation from the Point of Receipt to the Point of Delivery, including the interconnection costs to the downstream pipeline(s) and any additional facilities required to meet the delivery conditions or specifications of downstream pipeline(s). Subsequent Xxxxx shall be subject to the gathering fees set forth in Section 6.1(b) and the terms of Article VI.
Subsequent Xxxxx. 8.1 If the First Well drilled by Producer or any subsequent well is productive of oil and/or gas and the well is expected to return the investment and operating costs on that well during the anticipated productive life of the well to its economic limit, Producer shall drill an additional well on a unit containing a portion of the Premises as would be drilled by a reasonable prudent operator acting under the same or similar circumstances. If an additional well is necessary, it must be commenced no later than twelve (12) months after the end of the Primary Term of this Agreement; provided, however, that if Producer concludes that an additional well is not justified, Producer shall submit to Commission the information upon which the conclusion is based. Upon review of such information, if Commission determines that an additional well should be drilled, Producer shall have the option of drilling an additional well within six (6) months from Commission's determination or releasing all of the acreage covered by the agreement except for any acreage within an established Unit.
Subsequent Xxxxx. After completion of the Initial Test Well on the Prospect as a well capable of producing oil or gas in commercial quantities, or its abandonment as a dry hole, the Parties agree to develop the Prospect and all formations as would reasonable and prudent Operators and Non-Operators under the same or similar circumstances and in accordance with the applicable leases and the Operating Agreement. The Operating Agreement shall control participation in subsequent xxxxx drilled on the Prospect. 7.
Subsequent Xxxxx. Once [farmee] has drilled and completed the Commitment Xxxxx set forth above, [farmee] shall have the right to propose additional xxxxx in each area. For these xxxxx, the working interests will remain the same (Vanguard/Encore 30% and [farmee] 70%, proportionately reduced where applicable), but Vanguard/Encore’s options to participate will changes as follows: - Option 1: Vanguard/Encore can participate heads-up with up to 30% of its WI, meaning Vanguard/Encore can participate with anywhere from 1% - 30% WI. - Option 2: Vanguard/Encore may elect not to participate and be subject to a 150% Non- consent penalty[.] Should Vanguard/Encore elect Option 2 above, [farmee] shall earn and Vanguard/Encore shall deliver a proportionately reduced 75% NRI in the leases, keeping the difference between burdens of record and 25% as overriding royalty interest, but in no event shall the ORRI be less than 2%.
Subsequent Xxxxx. In the event that the Test Well is drilled to the Contract Depth Interval and is plugged and abandoned as a dry hole, Escopeta shall have the right but not the obligation to commence actual drilling of a replacement well or recompletion of an existing well on the Lease (the "Subsequent Test Well") within 30 days from the plugging of the Test Well as a dry hole provided Altus Exploration has provided, in advance, written consent of such drilling to Escopeta. If Escopeta should complete the Subsequent Test Well as the first producer in paying quantities, it shall be deemed to be the Test Well for all purposes of this Agreement.
