Common use of Work Commitment Clause in Contracts

Work Commitment. As a work commitment, on or before September 1, 2006, and on or before September 1 of each subsequent Lease Year until TOGI completes a bankable positive feasibility study, TOGI shall drill not less than 5,000 linear feet of exploration drilling on the Property or in the Area of Interest. TOGI's work commitment for the initial 5,000 feet of exploration drilling is a firm and unconditional commitment and obligation under this Agreement. If TOGI does not complete drilling of 5,000 linear feet on or before September 1, 2006, or drilling of 5,000 linear feet on or before September 1 during each subsequent Lease Year, TOGI shall have the right to pay to Owner in lieu of performance of the drilling work commitment the sum of Ten Dollars ($10.00) multiplied by the difference between 5,000 linear feet and the actual number of linear feet which TOGI drills on or before the applicable deadline. In such case, TOGI shall pay the sum to Owner within thirty (30) days following the applicable deadline. Any exploration drilling in excess of the minimum requirement shall be carried forward and credited in TOGI's favor against its exploration drilling commitment for any succeeding period. If TOGI's performance of its drilling work commitment in any period is deferred as a result of the occurrence and continuation of a force majeure event, TOGI shall be obligated to perform the deferred drilling work commitment on or before September 1 of the second year following termination of the force majeure event, provided, however, that TOGI shall retain the right to pay to Owner in lieu of performance the sum of Ten Dollars ($10.00) multiplied by the difference between the linear feet of the deferred drilling work commitment and the actual number of linear feet of such deferred drilling work commitment which TOGI drills during the applicable period. TOGI's work commitment shall terminate on TOGI's completion of a bankable positive feasibility study.