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:
(a) forty (40) acres around each well from which oil is produced as the principal product;
(b) three-hundred twenty (320) acres around each well completed above the top of the Onondaga Formation from which gas is being produced as the principal product;
(c) six-hundred forty (640) acres around each well completed below the top of the Onondaga Formation from which gas is being produced as the principal product; or
(d) that amount of leased acreage actually contained within an established unit, whichever is less.
21.02 Lessee shall not be required under this provision to drill more xxxxx than required or allowed under any spacing order, rule, or regulation of the Department of Environmental Protection Bureau of Oil and Gas Management, or in the absence of any such order, more than one well for each well completion depth horizon described in Section 21.01 above.
21.03 The amount of acreage around the subsurface location where oil and gas enters the well bore, commonly referred to as the “take point”, included in a spacing unit ordered by the Department of Environmental Protection Bureau of Oil and Gas Management, or in the absence of any such order, the well completion depth horizons described in Section 21.01 above, shall be referred to elsewhere in the lease as “acreage attributable to a well,” which comprises acreage directly above the subsurface “take point.”
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. If the location of any Well (“Subsequent Well”) is within the dedication described in Exhibit “B” then SELLER shall notify BUYER in writing upon start of the Subsequent Well’s drilling. After completion of the Subsequent Well, SELLER shall, within seven (7) 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”). BUYER shall have the right, but not the obligation, to connect such Subsequent Well to BUYER’s system at its expense. If BUYER elects not to construct such facilities, or does not initiate right-of-way acquisition for such facilities within thirty (30) days after BUYER receives the Well Data, SELLER may construct, at its expense, the facilities necessary to deliver the Gas from such Subsequent Well to s existing system. If neither Party connects such Subsequent Well, SELLER shall be entitled to a wellbore release from this agreement for production from any such Subsequent Well.
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.
(a) If Gatherer declines to connect a Subsequent Well, then upon written notice to Gatherer, Producer may connect such Subsequent Well to Gatherer’s existing or proposed System at its sole cost and expense, including reimbursement to Gatherer for its costs to establish a new CRP, pipeline taps, measurement equipment, telemetry and dehydration, as may be reasonably necessary. In that case, the Well (and all Xxxxx utilizing the Producer-funded facilities), will be deemed an Initial Well and subject to the fee structure for Initial Xxxxx in Section 6.1(a). Alternatively, at its sole and absolute discretion, Producer may by written notice to Gatherer, obtain the release of Subsequent Xxxxx and lands from the Dedicated Area and the terms of this Agreement, as follows:
(1) If a Subsequent Well that Gatherer has declined to connect is located within a prospect area within the Dedicated Area (as shown on Exhibit “E”) (“Prospect Area”), then Gatherer shall release from the Dedicated Area all lands, leases and Xxxxx (Initial Xxxxx and Subsequent Xxxxx, whether drilled or not), within said Prospect Area; or
Subsequent Xxxxx. (a) Following the Completion or plugging and abandonment of all four (4) Obligation Xxxxx and all sixteen (16) Earning Xxxxx, any Party shall have the right to propose the drilling of Subsequent Xxxxx.
(b) All operations in connection with the Subsequent Xxxxx, including the proposal to drill such a Subsequent Well, the proposals whether to Complete or plug and abandon such Subsequent Well, the rights of the Parties to elect whether to participate in any such proposed operation, and the consequences of an election not to participate therein, shall be governed by the terms of the JOA, except to the extent that an issue relating to such an operation is expressly covered by this JDA, in which case this JDA shall govern and control.
(c) Eagle or its designee shall serve as the operator of all Subsequent Xxxxx. Eagle shall conduct all operations in the Subsequent Xxxxx with diligence in accordance with the standards, terms, and provisions of the JOA and applicable Laws.
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.
Subsequent Xxxxx. In respect of section 3.5 of the Agreement the same is amended as follows:
(a) if the well is the first well drilled the location of which is determined by API, separately and each of 858642 and Xxxxxxx have the right to participate in such well and spacing unit to earn a separate 4.21875% working interest before payout and a 3.80859375% working interest after payout by separately paying 6.25125% of the Drilling Costs and costs in connection with Completing, Equipping, Capping or Abandoning the well; or,
(b) if the well is not the first well drilled the location of which is determined by API, separately and each of 858642 and Xxxxxxx have the right to participate in such well and spacing unit to earn a separate 4.21875% working interest before payout and a 3.80859375% working interest after payout by separately paying 4.6875% of the Drilling Costs and costs in connection with Completing, Equipping, Capping or Abandoning the well. Provided that the working interest of 858642 and/or Xxxxxxx in each Well subsequent to the Third Well, before and after payout, shall be subject to the 9.5% XXXX and government royalties.”
Subsequent Xxxxx. Prior to payout of the Test Well, only a Participant herein shall be entitled to propose the drilling of any well, or xxxxx, subsequent to the Test Well (“Subsequent Xxxxx”) in accordance with the terms and conditions of the OOA. Notwithstanding anything the contrary contained in Paragraph 5 above, in the event a Subsequent Well is proposed to be drilled on the Lease before Payout, in lieu of any other options contained herein, Maritech shall have the right to participate as to its 20% working interest in each such Subsequent Well pursuant to and in accordance with the OOA.
