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: (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. 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: (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 provision, to drill more xxxxx than required or allowed under any spacing order, rule, or regulation of the Department of Environmental Protection Protection’s 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 Protection’s 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. 21.01 8.1 If the First Well drilled by Lessee, Producer or any subsequent well, well is productive of oil and/or gas, 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 Producer 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 Premises as would be drilled by an ordinary a reasonable prudent operator acting under the same or similar circumstances. If Lessee 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, then Lessee Producer shall submit to Department Commission the information upon which its the conclusion is based. If upon Upon review of such information, Department if Commission determines that an additional well should be drilled, then Lessee Producer shall have the option of drilling an additional well within two six (26) years months from Department’s Commission's determination or releasing all of the acreage covered by the lease agreement 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 any acreage actually contained within an established unit, whichever is lessUnit. 21.02 Lessee 8.2 Producer shall not be required under this provision to drill more xxxxx than required or allowed under any spacing order, rule, or regulation of the Pennsylvania Department of Environmental Protection Bureau of Oil and Gas Management(“DEP”), or in the absence of any such order, more than one (1) well for each well completion depth horizon described spacing unit as outlined in Section 21.01 aboveParagraph 8.3. 21.03 8.3 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 shall be regulated by the Department of Environmental Protection Bureau of Oil and Gas ManagementDEP, or in the absence of any an order by the DEP, forty (40) acres where oil is being produced as the principal product of such orderwell, or six hundred forty (640) acres where gas is being produced as the principal product of such deep well completion depth horizons described in Section 21.01 abovewhich has been drilled to the Marcellus Shale Formation or deeper, shall be referred to elsewhere in or one hundred twenty (120) acres where gas is being produced as the lease as “acreage attributable to a well,” principal product of such shallow well which comprises acreage directly has been drilled above the subsurface “take pointMarcellus Shale Formation.”

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: (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 provision, to drill more xxxxx than required or allowed under any spacing order, rule, or regulation of the Department of Environmental Protection Protection’s 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 Protection’s 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.”the

Subsequent Xxxxx. 21.01 If 7.1 Within ninety (90) days after the First date the East Unit Well drilled by Lesseeis plugged and abandoned, or any subsequent well, one hundred eighty (180) days after the East Unit Well is productive completed as a Well capable of producing oil and/or 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 PVOG shall have the option of to commence Meander Prospect September 3, 2002 Page 10 operations for drilling an additional well within two (2) years from Department’s determination on the West Unit Well or releasing a Well on the Non-Unitized Acreage. In the event PVOG elects not to drill the West Unit Well or a Well on the Non-Unitized Acreage, this Agreement shall terminate and the Parties shall have no further rights or obligations to each other in the subject area except as to the East Unit. In the event any Party other than PVOG elects not to participate in the West Unit Well or a Well on Non-Unitized Acreage, PVOG shall receive all of the acreage covered by interest of such non-participating Party under the lease except same terms and conditions as PVOG's original interest in such Well or Xxxxx. 7.2 Within ten (10) days following PVOG's election to drill the West Unit Well or a Well on the Non-Unitized Acreage PVOG shall pay to Beta, the $1,300,000.00 Installment under Section 2.4 above. 7.3 In the event the Parties drill the West Unit Well before a Well on the Non-Unitized Acreage, the Parties shall have the option for a period of one (1) year following the following: (a) forty (40) acres around each well from completion of the West Unit Well as an oil or gas Well or as a dry hole within which oil is produced as to commence operations for drilling on a Well on the principal product; (b) threeNon-Unitized Acreage. If the Parties elect to drill a Well on the Non-Unitized Acreage before the West Unit Well, the Parties shall have the option for a period of one hundred twenty (320120) acres around each well completed above the top days following completion of the Onondaga Formation from Well on the Non-Unitized Acreage within which gas is being produced as to commence operations for drilling on 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 lessWest Unit Well. 21.02 Lessee 7.4 The Parties may, at their option, drill the West Unit Well (but not a Well on the Non-Unitized Acreage) before the East Unit Well. If the Parties drill the West Unit Well before the East Unit Well, then the Parties shall not be required under this provision have the option to drill more xxxxx than required or allowed the East Unit Well after the West Unit Well under any spacing orderthe terms and conditions provided for the West Unit Well. 7.5 In the event PVOG elects to drill the West Unit Well before the East Unit Well, rulePVOG shall, or regulation within ten (10) days following PVOG's election to drill the West Unit Well, pay to Beta the sum of $650,000.00 payable under Section 2.3 above and 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 $1,300,000.00 payable under Section 21.01 2.4 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.”