The Applicant’s Plans for Exploration and Development of the Proposed Slugger Unit Area Sample Clauses

The Applicant’s Plans for Exploration and Development of the Proposed Slugger Unit Area. In the application to form the Slugger Unit, BP proposed a two-year unit plan of exploration. BP’s proposed XXX included plans to drill a single exploration well in the Kemik formation. BP’s proposed XXX is not in the best interest of the state and is unacceptable for a number of reasons. Specifically, the level of exploration proposed does not justify including all the acreage in the unit. Completion of a well on one lease can not hold 79,000 acres or an additional thirteen leases beyond their primary terms. In order to justify inclusion of the acreage proposed for inclusion in the unit, at least one well must be drilled in both Area A and Area B, as described in Attachment 3. BP’s proposed XXX only describes one well that may be drilled, and does not specify where such well would be drilled. BP proposed that if they drilled and completed, suspended, or abandoned the first well by June 15, 2003, the entire unit would remain in effect, and then BP would submit a second plan of exploration or a first plan of development. BP’s proposal simply extends the primary terms of unexplored acreage in the unit area an additional two-years without benefit to the state. Therefore, DNR has proposed an alternative XXX that meets the requirements of 11 AAC 83.303. DNR proposes a three-year plan of exploration for the Slugger Unit. The lessees, referred to as Working Interest Owners, will proceed with the exploration activities described below within the Slugger Unit Area; otherwise, the unit and unit agreement are not approved and eight leases terminate on March 31, 2001.