Common use of TIMELY OPERATIONS Clause in Contracts

TIMELY OPERATIONS. Ridgewood understands that the [Redacted] Lease is beyond its primary term and is subject to a Suspension of Operations (“SOO”) granted by the MMS. Said SOO expires November 30, 2008 and LLOG shall attempt to get an extension of said SOO through December 2008. LLOG will use the Noble Xxxxxx Xxxxxx rig to drill the ITW as soon as such rig is finished with its operations on another LLOG owned block. LLOG shall not be liable to Ridgewood or suffer any penalties for failure to spud the ITW before the expiration of the SOO (or any extensions thereof). Notwithstanding anything contained herein to the contrary, should LLOG not spud the ITW prior to the expiration of the SOO (or any extensions thereof), all commitments and obligations will herein will cease and Ridgewood will reassign all of its interest to LLOG and LLOG will refund to Ridgewood all Sunk Land Costs previously paid by Ridgewood to LLOG.