Substitute Xxxxx. If any obligatory Exploration Well is abandoned due to insurmountable technical problems as set out in Article 3.2.1 (b), (c) and (d) and, at the time of such abandonment, the Exploration Costs for such Well have equaled or exceeded [insert amount] Dollars ($[insert amount]), for all purposes of this Contract, the Contractor shall be deemed to have fulfilled the minimum work obligations for the relevant period. If any obligatory Exploration Well is abandoned due to insurmountable technical problems, and if at the time of such abandonment, the Exploration Costs for such Well are less than [insert amount] Dollars ($[insert amount]) then the Contractor shall have the option to either:
(a) drill a substitute Exploration Well at the same or another location to be agreed with the Ministry; or
(b) pay the Ministry an amount equal to the difference between [insert amount] Dollars ($[insert amount]) and the amount of Exploration Costs actually spent in connection with such Exploration Well.
Substitute Xxxxx. If any obligatory Exploratory Well is abandoned due to insurmountable technical problems as set out in Article 3.2.1, items (b), (c) and (d) and, at the time of abandonment, the Exploration Costs for that Well equal or exceed … million Dollars ($...MM), for all purposes of this Contract, the Contractor will be considered to have fulfilled its minimum work obligations for the period in question. If any obligatory Exploratory Well is abandoned due to insurmountable technical problems and if, at the time of abandonment, the Exploration Costs for that Well are less than … million Dollars ($...MM), the Contractor will choose between the following options:
(a) drill a substitute Exploratory Well in the same or a different site to be agreed on with the Ministry: or
(b) pay the Ministry an amount equal to the difference between …million dollars ($...MM) and the amount of Exploration Costs effectively spent in connection with this Exploratory Well, which will be treated as if it were the finalization of the well, thus fulfilling the minimum work obligations with this Well.
Substitute Xxxxx. If any well drilled under the terms of this Agreement fails to reach its objective depth, either because of mechanical difficulties or because the well encounters excessive water flow, loss of circulation, excessive pressures, cavities, salt or salt dome material, heaving shale or other practicably impenetrable conditions which would, in the opinion of a prudent operator, render further drilling impracticable, then the operator of such well may at its election commence actual drilling of a substitute well at approximately the same location with the same objective depth within 30 days after abandonment of the well being replaced and thereupon the substitute well should be considered and treated for all purposes as though it were the well for which it is a substitute.
Substitute Xxxxx. If any obligatory Exploration Well is abandoned due to events or problems as set out in Article 3.2.1(a), (b), (c) and (d) and, at the time of such abandonment, the Exploration Costs for such Well have equaled or exceeded thirty million Dollars ($30,000,000), for all purposes of this Contract, the Contractor shall be deemed to have fulfilled the Minimum Work Program obligations for the relevant period. If any obligatory Exploration Well is abandoned due to insurmountable technical problems, and if at the time of such abandonment, the Exploration Costs for such Well are less than thirty million Dollars ($30,000,000) then the Contractor shall have the option to either:
(a) drill a substitute Exploration Well at the same or another location to be agreed with the Ministry; or
(b) pay the Ministry an amount equal to the difference between thirty million Dollars ($30,000,000) and the amount of Exploration Costs actually spent in connection with such Exploration Well; and
(c) such substitute well or payment per Articles 3.4(a) or (b) shall be deemed to have fulfilled the Minimum Work Program obligations for the relevant Sub-Period or Extension Period.
Substitute Xxxxx. If, because of encountering impenetrable substances or because of other conditions making further drilling impracticable, Farmee may discontinue drilling any well under this Contract before reaching Contract Depth. Farmee shall have the right, but not the obligation, to drill a "substitute" well at a legal location on the same tract of acreage as the well it is to replace, provided the actual drilling of said substitute well is commenced not later than thirty (30) days after the abandonment of the Exploration Test Well or other well which it is to replace. If Farmee elects to commence a substitute well, it thereafter shall prosecute the drilling thereof to Contract Depth and complete said substitute well with due diligence. If a substitute well is drilled as herein provided, than Farmee shall be deemed to have complied with this Contract as if the substitute well had been an original well.
Substitute Xxxxx. In the event granite, salt, saltwater flow, heaving shale or other 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 Xxxxx shall include such Substitute Well.
Substitute Xxxxx. 4.1. If Laramie has failed to earn an assignment under the terms of this Agreement because the applicable Earning Well failed to reach the required depth as a result of mechanical problems or impenetrable strata or other conditions in the hole which make further drilling impracticable, under generally accepted oil field practices, Laramie shall have the option, but not the obligation, to drill a substitute well subject to the following provisions:
(a) Laramie shall give Dejour/Brownstone written notice describing the status of the well and stating whether or not Laramie elects to drill a substitute well. This notice shall be given while the drilling rig or completion unit is on the well, or within 10 days after its release. Failure to timely make such an election shall be deemed to be an election by Laramie not to drill a substitute well.
(b) If Laramie elects not to drill a substitute well, or if Laramie has waived its right to do so as provided above, Dejour/Brownstone shall advise Laramie within 10 days after receipt of Laramie's notice, or within 72 hours if the rig is on location, whether or not Dejour/Brownstone elects to take over the well as provided in paragraph below. If Dejour/Brownstone elects not to take over the well or fails to make an election, Laramie shall promptly plug and abandon the well and restore the surface.
(c) Any substitute well drilled by Laramie shall be spudded within 30 days after Laramie's discontinuance of drilling the well for which it is a substitute and the well shall be drilled, tested, and completed or plugged and abandoned in accordance with all of the requirements specified for the original Earning Well and with the same consequences. The substitute well shall be considered as the applicable Earning Well for all purposes of this Agreement.
Substitute Xxxxx. 3.1 If, prior to reaching Casing Point in the Initial Well, BP should encounter geological or mechanical conditions which render further operations impracticable or economically infeasible, in the sole reasonable opinion of BP, BP shall (i) give written notice of such occurrence to Company, and (ii) such notice shall state whether BP proposes to attempt to Complete the Initial Well in a shallower Zone or to abandon the Initial Well as a dry hole.
(A) If BP proposes to Complete the Initial Well without reaching the Objective Zone, such notice shall also include a completion AFE. The completion AFE shall include, at a minimum, an estimate of Completion Costs for the Initial Well. Company shall have forty-eight (48) hours (exclusive of Saturday, Sunday and holidays) from receipt of the notice to elect, by written notice, whether it will participate in accordance with Section 2.4. BP shall not Complete the Initial Well until Company has notified BP in writing whether or not it will participate or until forty-eight (48) hours (exclusive of Saturday, Sunday and holidays) have elapsed since Company’s receipt of BP’s notice. Failure to respond within the time period allowed shall be deemed to be an election not to participate in the Completion of the Initial Well. If BP proposes to Complete the Initial Well and Company elects not to participate in such Completion attempt, or is deemed not to participate, BP may nonetheless continue with such operation and carry Company’s proportionate part of Completion Costs in accordance with Section 2.5.
(B) If BP proposes to abandon the Initial Well as a dry hole, (i) BP shall plug and abandon the Initial Well in accordance with Section 2.7, and (ii) Company shall have no right or option to takeover the Initial Well.
3.2 If BP does not drill the Initial Well to the Objective Zone, Company shall have the right, but not the obligation, for a period of one (1) year from the date the drilling rig used to drill the Initial Well is removed from the well site location for the Initial Well (the “Rig Release Date”), to participate in the drilling of a Substitute Well. BP shall have no obligation to drill a Substitute Well, and Company shall have no right to propose a Substitute Well. If and when BP elects to drill a Substitute Well, BP shall provide Company with an AFE for the Substitute Well. The AFE for the Substitute Well shall include, at a minimum, the surface and bottomhole location of the Substitute Well, the Objective Zone, and...
Substitute Xxxxx. If, during the drilling of an Obligation Well, Eagle should encounter an impenetrable substance, a condition in the hole, or a mechanical problem which renders the further drilling of the Obligation Well impossible or impractical, Eagle shall provide to Stratex prompt written notice of such fact, and Eagle shall plug and abandon the Obligation Well in strict compliance with all applicable Laws and lease requirements and may, within thirty (30) days of the plugging and abandonment thereof, commence operations for the drilling of a substitute well at a legal location within the same Drilling Unit as the Obligation Well for which it is a substitute. If drilled, Eagle shall provide to Stratex written notice of such decision, together with a plat showing the location of the substitute well and an A.F.E. showing the estimated Drilling Costs and Completion costs with respect thereto. Thereafter, the substitute well shall be drilled according to the same terms and conditions provided for the Obligation Well for which it is in substitution and shall be deemed for all purposes to be that Obligation Well, and all costs and revenues for such substitute well shall be borne and shared, respectively, by each Party as though such substitute well were the Obligation Well for which it is in substitution.
Substitute Xxxxx. 16 11. Additional Consideration - State Leases............. 18 12. Indemnity........................................... 18 13. Assignment.......................................... 18 14. Reassignment........................................ 19
