Common use of Subsequent Xxxxx Clause in Contracts

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. 21.01 If the First Well “FIRST WELL” drilled by LesseeXxxxxx, 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, 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 Xxxxxx concludes an additional well is not justified, then Lessee shall submit to Department the information upon which its conclusion is based. If upon Upon review of such information, if 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: