Common use of Surrender of Leases Clause in Contracts

Surrender of Leases. The Leases covered by this Agreement, insofar as they embrace acreage in the Area of Mutual Interest, shall not be surrendered in whole or in part unless all Parties consent to the surrender. However, should any Party desire to surrender its interest in any Lease or in any portion of a Lease, the Party shall give written notice of the proposed surrender to all Parties, and each Party to whom the notice is delivered shall have thirty (30) days after delivery of the notice within which to notify the Party proposing the surrender whether it elects to consent to the surrender. Failure of a Party to whom a notice is delivered to reply within the thirty (30) day period shall constitute consent to the surrender of the Lease described in the notice. If all Parties do not agree or consent to the surrender, the Party desiring to surrender shall assign, without express or implied warranty of title, all of its interest in the Lease, or portion of it, and any well, material, and equipment which may be located on it and any rights in production later secured, to the Parties not consenting to the surrender. Unless otherwise hereafter required by Assignee, on the assignment, the assigning Party shall be relieved from all obligations later accruing, but not previously accrued, with respect to the interest assigned and the operation of any well attributable thereto, and the assigning Party shall have no further interest in the assigned premises and its equipment and production other than the royalties retained in any lease made under the terms of this Article VIII. The Party assignee shall pay to the Party assignor the reasonable salvage value of the latter’s interest in any well’s salvable materials and equipment attributable to the assigned acreage. The value of all salvable materials and equipment shall be determined in accordance with the provisions of Exhibit B, less the estimated cost of salvaging and the estimated cost of plugging and abandoning and restoring the surface. If the value is less then the costs, then the Party assignor shall pay to the Party assignee the amount of the deficit. If the assignment is in favor of more than one Party, the interest shall be shared by those Parties in the proportions that the interest of each bears to the total interest of all those Parties. If the interest of the Parties to whom the assignment is to be made varies according to depth, then the interest assigned shall similarly reflect those variances. Any assignment or surrender made under this provision shall not reduce or change the assignor’s or surrendering Party’s interest as it was immediately before the assignment or surrender in the balance of the Contract Area; and the acreage assigned or surrendered, and subsequent operations on them, shall not later be subject to the terms and provisions of this Agreement, but shall be deemed subject to an Operating Agreement in the form of this Agreement.

Surrender of Leases. a. The Leases leases covered by this Agreementagreement, insofar as they embrace acreage in the Area of Mutual InterestContract Area, shall not be surrendered in whole or in part unless all Parties parties consent to the surrender. thereto. b. However, should any Party party desire to surrender its interest in any Lease lease or in any portion of a Lease, the Party shall give written notice of the proposed surrender to all Partiesthereof, and each Party to whom the notice is delivered shall have thirty (30) days after delivery of the notice within which to notify the Party proposing the surrender whether it elects to consent to the surrender. Failure of a Party to whom a notice is delivered to reply within the thirty (30) day period shall constitute consent to the surrender of the Lease described in the notice. If all Parties other parties do not agree or consent to the surrenderthereto, the Party party desiring to surrender shall assign, without express or implied warranty of title, all of its interest in the Leasesuch lease, or portion of itthereof, and any well, material, material and equipment which may be located on it thereon and any rights in production later thereafter secured, to the Parties parties not consenting to the such surrender. Unless otherwise hereafter required by Assignee, on If the assignmentinterest of the assigning party is or includes an oil and gas interest, the assigning Party party shall execute and deliver to the party or parties not consenting to such surrender an oil and gas lease covering such oil and gas interest for a term of one (1) year and so long thereafter as oil and/or gas is produced from the land covered thereby. Upon such assignment or lease, the assigning party shall be relieved from all obligations later thereafter accruing, but not previously theretofore accrued, with respect to the interest assigned or leased and the operation of any well attributable thereto, and the assigning Party party shall have no further interest in the assigned or leased premises and its equipment and production other than the royalties retained in any lease made under the terms of this Article VIIIArticle. The Party party assignee or lessee shall pay to the Party party assignor or lessor the reasonable salvage value of the latter’s interest in any well’s salvable materials xxxxx and equipment attributable to the assigned or leased acreage. The value of all salvable materials and equipment material shall be determined in accordance with the provisions of Exhibit B, “C,” less the estimated cost of salvaging and the estimated cost of plugging and abandoning and restoring the surface. If the value is less then the costs, then the Party assignor shall pay to the Party assignee the amount of the deficitabandoning. If the assignment or lease is in favor of more than one Partyparty, the interest shall be shared by those Parties such parties in the proportions that the interest of each bears to the total interest of all those Parties. If the interest of the Parties to whom the assignment is to be made varies according to depthsuch parties. c. Any assignment, then the interest assigned shall similarly reflect those variances. Any assignment lease or surrender made under this provision shall not reduce or change the assignor’s, lessor’s or surrendering Partyparty’s interest as it was immediately before the assignment assignment, lease or surrender in the balance of the Contract Area; and the acreage assigned assigned, leased or surrendered, and subsequent operations on themthereon, shall not later thereafter be subject to the terms and provisions of this Agreement, but shall be deemed subject to an Operating Agreement in the form of this Agreementagreement.

Surrender of Leases. The Leases leases covered by this Agreement, insofar as they embrace acreage in the Area of Mutual InterestUnit Area, shall not be surrendered in whole or in part unless all Parties consent to the surrenderparties consent. However, should any Party party desire to surrender its interest in any Lease lease or in any portion of a Lease, the Party shall give written notice of the proposed surrender to all Partiesthereof, and each Party to whom the notice is delivered shall have thirty (30) days after delivery of the notice within which to notify the Party proposing the surrender whether it elects to consent to the surrender. Failure of a Party to whom a notice is delivered to reply within the thirty (30) day period shall constitute consent to the surrender of the Lease described in the notice. If all Parties do other parties not agree or consent to the surrenderconsent, the Party party desiring to surrender shall assign, assign without express or implied warranty of title, all of its interest in the Leasesuch lease, or portion of itthereof, and any well, material, material and equipment which may be located on it thereon and any rights in production later thereafter secured, to the Parties parties not consenting desiring to the surrendersurrender it. Unless otherwise hereafter required by Assignee, on the Upon such assignment, the assigning Party party shall be relieved from all obligations later thereafter accruing, but not previously theretofore accrued, with respect to the interest acreage assigned and the operation operations of any well attributable theretothereon, and the assigning Party party shall have no further interest in the lease assigned premises and its equipment and production other than the royalties retained in any lease made under the terms of this Article VIIIproduction. The Party parties assignee shall pay to the Party party assignor the reasonable salvage value of the latter’s 's interest in any well’s salvable materials wells and equipment attributable to on the assigned acreage. The value of all salvable materials and equipment shall be , determined in accordance with the provisions of Exhibit B, less the estimated cost of salvaging and the estimated cost of plugging and abandoning and restoring the surface. If the value is less then the costs, then the Party assignor shall pay to the Party assignee the amount of the deficitabandoning. If the assignment is in favor of more than one Partyparty, the assigned interest shall be shared by those Parties the parties assignee in the proportions that the interest of each bears to the total interest of all those Parties. If the interest of the Parties to whom the assignment is to be made varies according to depth, then the interest assigned shall similarly reflect those variancesparties assignee. Any assignment or surrender made under this provision shall not reduce or change the assignor’s 's or surrendering Party’s interest parties' interest, as it was immediately before the assignment or surrender assignment, in the balance of the Contract Area; Unit Area and the acreage assigned or surrendered, and subsequent operations on themthereof, shall not later thereafter be subject to the terms and provisions of this Agreement, but shall be deemed subject to an Operating Agreement in the form of this Agreement.