Substitute Wells Sample Clauses
The Substitute Wells clause allows a party, typically an operator in an oil and gas agreement, to replace a designated well with another well under certain conditions. This clause outlines the circumstances under which substitution is permitted, such as when the original well cannot be drilled or completed as planned, and specifies the process for designating and approving the substitute well, including any required notifications or consents. Its core practical function is to provide operational flexibility and ensure that the objectives of the agreement can still be met even if unforeseen issues arise with the original well location.
Substitute Wells. In the event granite, salt, saltwater flow, heaving shale or ▇▇▇▇▇ conditions, including either the loss of the hole or mechanical difficulties, are encountered in the drilling or completing of a Subject Well drilled pursuant to the terms of this Agreement which would render further operations impracticable in the opinion of El Paso, El Paso has the right but not the obligation under this Agreement to commence the actual drilling of a "Substitute Well", at a legal location to the same target objective as the Subject Well after the plugging and abandoning of the Subject Well during the period this Agreement is in place. Such Substitute Well shall become a Subject Well and any reference to the Subject Wells shall include such Substitute Well.
Substitute Wells. 1▇ Section 3.6 InterOil to Pay Costs........................................................... 10 Section 3.7 Timing; Drilling to Total Depth................................................. 10 Section 3.8 Reports......................................................................... 10 Section 3.9 Disclosure...................................................................... 11
Substitute Wells. If, during t▇▇ ▇rilling of any well by or on behalf of Assignee during this Term Assignment, the hole is lost or junked before reaching the objective depth, or if Assignee encounters conditions in the hole that render further drilling or completion impractical, Assignee may drill a substitute well if operations for such substitute well are commenced within 60 days after abandonment of the unsuccessful operations.
Substitute Wells. If, in the drilling of either of the Test W▇▇▇▇ mechanical difficulties arise or impenetrable substances are encountered which render further drilling impossible or impracticable, or in the event said Test Well reaches Contract Depth and is a dry hole, ARMADA shall promptly plug, but shall have the option to commence a substitute well therefore at a location of ARMADA’s choice on the designated Unit within 90 days from the date of such plugging and abandonment. Any substitute well so commence shall drilled to the same depth and in the same manner as is required for the Test Well provided for hereinabove, and the drilling and completion thereof shall have the same effect hereunder as would drilling and completing the Test Well. ARMADA shall have the right to drill as many substitute w▇▇▇▇ as needed to meet the requirements of a Test Well, provided that each such substitute well conforms to the requirement of this section.
Substitute Wells. If an Initial Commitment ▇▇▇▇ encounters drilling conditions or reservoir conditions in the drilling of the well which in the opinion of a prudent operator would cause the operator to cease drilling and abandon the hole prior to Completion, and Operator abandons the hole for such reasons, Operator shall have the right to spud a substitute well (a "Substitute Well") at the closest practicable location either, at Operator's election, (i) within 30 days following the abandonment or (ii) within 30 days following Completion of the second scheduled Initial Commitment Well. A Substitute Well, if drilled and paid for in the same manner as required by this Agreement, shall constitute an Initial Commitment Well. All of the costs of both the abandoned well and the Substitute Well must be paid by INVESTOR in the manner required by Section 4.01 in order for an Earning Event to occur with respect to the applicable Drilling Unit.
Substitute Wells. If a Designated Exploration Well cannot successfully be drilled t▇ ▇▇▇al Depth, because of mechanical difficulties or because of encountering a formation or anomalous condition which is customarily considered in the industry to be impenetrable or which would make further drilling impracticable, or for any other cause reasonably beyond the control of InterOil, then InterOil shall, at its option, either (i) drill a substitute well at a location in the immediate vicinity of the location and to the Total Depth established for the Designated Exploration Well whose drilling was abandoned, or (ii) shall designate as a substitute well one of the other Designated Exploration Well(s) or Optional Exploration Well(s) and such substitute well shall be a Designated Exploration Well, as provided herein. If InterOil elects to designate as a substitute well one of the other Designated Exploration Well(s) or Optional Exploration Well(s), then InterOil shall designate an additional Designated Exploration Well or Optional Exploration Well, as appropriate, in accordance with the provisions of Section 3.2 or Section 3.3
Substitute Wells