Common use of Area of Mutual Interest Clause in Contracts

Area of Mutual Interest. In the event of Closing, thereafter the ----------------------- parties agree that in the event either party or an affiliate of either party (the "Acquiring Party") shall acquire any oil and gas interests, whether producing or nonproducing, farmouts or other similar contracts which affect or pertain to lands and minerals, located within Huerfano County, Colorado (the "Interests"), it shall notify the other party (the "Nonacquiring Party") of such acquisition. At the time of giving the notice, the Acquiring Party shall provide access to copies of all instruments of acquisition, including without limitation, copies of leases, abstracts, agreements, title memos, assignments, subleases, farmouts and other contracts affecting the Interests in possession of the Acquiring Party. For thirty days (30) days after receipt of the notice of acquisition, Nonacquiring Party shall have the right to acquire its Proportionate Interest (as defined below) in the acquisition on the same terms and conditions on which the Acquiring Party has acquired or has the right to acquire such Interest by notifying the Acquiring Party of its desire to share in the acquisition, and paying its Proportionate Share of the cost of acquisition, or in the case of a farmout or other similar agreement requiring certain performance such as drilling of a test well, agreeing to be liable for its Proportionate Share of the cost of any performance required. For purposes of this Section, the term Proportionate share shall mean: a) when it pertains to leasehold working interests, ninety percent (90%) in the case of PGP and ten percent (10%) in the case of Infinity; and b) when it pertains to mineral interests and overriding royalty interests, fifty percent (50%) in the case of PGP and fifty percent (50%) in the case of Infinity. Any mineral interests in Huerfano County acquired by either party shall be subject to POP's right to acquire an oil and gas lease thereon, which lease shall reserve to the mineral owners a royalty interest of 1/8th of production. Notwithstanding anything to the contrary in this Section 8.4, the Coltex Overrides shall not be subject to the terms of this Section 8.4.

Area of Mutual Interest. In The Parties hereby establish and create an Area of Mutual Interest (referred to as the event “DJ Basin Greenhorn AMI”) consisting of Closingthe following described lands located in ▇▇▇▇▇▇ and Weld Counties, thereafter Colorado: The term of the ----------------------- parties agree that DJ Basin Greenhorn AMI shall coincide with the Term of this Agreement as set forth in Section 2. At any time during the event either Term of this Agreement, any party to this Agreement shall have the right to (a) acquire one or an affiliate of either party (the "Acquiring Party") shall acquire any more oil and gas interestsleases covering lands in the DJ Basin Greenhorn AMI, whether producing (b) acquire an option, by farmout agreement or nonproducingotherwise, farmouts to acquire an interest in one or other similar contracts which affect more oil and gas leases covering lands in the DJ Basin Greenhorn AMI; or pertain (c) acquire an interest in the royalty or mineral estate underlying lands in the DJ Basin Greenhorn AMI. Any lease, option, royalty or mineral interest obtained shall be referred to lands and minerals, located within Huerfano County, Colorado as an "Acquisition". Within thirty (30) days after an Acquisition is made (the "Interests"Acquisition of a state or federal lease acquired at auction is made when the lease is issued), it the party so acquiring shall notify all other parties to this Agreement of the Acquisition in writing (“Notice of Acquisition”). The Notice of Acquisition shall contain sufficient information to apprise all non-acquiring parties of the acreage affected by the Acquisition, the costs thereof, the terms and burdens thereon, and shall be accompanied by a copy of the lease, option contract or mineral/royalty deed. Any acquisition of an interest within the DJ Basin Greenhorn AMI by an affiliate, subsidiary, or a party related to either Party shall be deemed to be an Acquisition by Vecta or Synergy, and the interest in the Acquisition being offered pursuant to the provisions of the Agreement shall not bear any additional costs or burdens other party (the "Nonacquiring Party") of such acquisition. At than those created at the time of giving the noticeoriginal lease or other contract covering lands within the DJ Basin Greenhorn AMI. Any acquisition of any interest within the DJ Basin Greenhorn AMI being offered pursuant to the provisions of the Agreement shall be extended to the other Party (or Parties) at actual cost, and no such interest being assigned hereunder shall bear any additional direct or indirect costs or burdens. Each non-acquiring party shall have thirty (30) days from receipt of the Notice of Acquisition within which to notify the acquiring party of its election to participate or decline participation in the Acquisition. Failure to timely render an election to participate shall constitute an election not to participate in the Acquisition. If a well is actually drilling in the DJ Basin Greenhorn AMI, or on lands pooled, unitized or communitized therewith, at the time the Acquisition is made, the Acquiring period for the election shall be reduced to seventy two (72) hours from receipt of the Notice of Acquisition. Each party electing to participate in the Acquisition shall be entitled to participate in the Acquisition to the extent of its interest. As to leases acquired in the DJ Basin Greenhorn AMI, whether by purchase or by farmout, Vecta (and any partners secured by Vecta) shall have the right to participate in an Acquisition to the extent of an 65.00% interest and Synergy shall have the right to participate in an Acquisition to the extent of its 35.00% interest. All costs of the Acquisition, including, but not limited to, lease bonuses, broker fees, recording fees, costs of abstracts and title memoranda, costs of title examination and other related costs, shall be borne by the various Parties electing to participate to the extent of their participation in the Acquisition. Each Party shall provide access to copies of all instruments of acquisition, including without limitation, copies of leases, abstracts, agreements, title memos, assignments, subleases, farmouts and other contracts affecting reimburse the Interests in possession acquiring Party for its share of the Acquiring Partyacquisition costs within thirty (30) days of receipt of a duly particularized invoice. For Failure of any Party to timely reimburse the acquiring Party for the invoiced amount shall be deemed to be an election by such Party not to participate in the Acquisition, notwithstanding its prior stated intent with respect to participation in the Acquisition. The interest in the Acquisition previously allocated to such Party shall then be offered by the acquiring Party to all other Parties who elected to participate in the Acquisition on a pro-rata basis; any interest not assumed by a non-acquiring Party shall be assumed by the participating Parties. Within thirty days (30) days after receipt from all participating Parties of the notice of acquisitionacquisition costs, Nonacquiring the acquiring Party shall have execute and deliver an appropriate assignment of the right interests so acquired to acquire its Proportionate Interest (all other participating Parties. If any Acquisition applies to lands which fall partly within and partly outside the DJ Basin Greenhorn AMI, only the portion of the Acquisition covering lands within the DJ Basin Greenhorn AMI shall be made available to all non-acquiring Parties, and a party must elect to participate only as defined below) to the portion of the lands affected by the Acquisition which fall within the DJ Basin Greenhorn AMI. If less than all Parties to this Agreement elect to participate in an Acquisition, all interests in the acquisition on DJ Basin Greenhorn AMI lands subject to the same terms and conditions on which Acquisition shall be excluded from the Acquiring Party has acquired or has the right to acquire such Interest by notifying the Acquiring Party of its desire to share in the acquisition, and paying its Proportionate Share provisions of the cost of acquisitionAgreement, or in the case of a farmout or other similar agreement requiring certain performance such as drilling of a test well, agreeing to be liable for its Proportionate Share of the cost of any performance required. For purposes of this Section, the term Proportionate share shall mean: a) when it pertains to leasehold working interests, ninety percent (90%) in the case of PGP and ten percent (10%) in the case of Infinity; and b) when it pertains to mineral interests and overriding royalty interests, fifty percent (50%) in the case of PGP and fifty percent (50%) in the case of Infinity. Any mineral interests in Huerfano County acquired by either party but shall be subject to POP's right to acquire an oil and gas lease thereon, which lease shall reserve to the mineral owners a royalty interest of 1/8th of production. Notwithstanding anything to the contrary in this Section 8.4, the Coltex Overrides shall not be made expressly subject to the terms and conditions of a separate Operating Agreement essentially identical to the form attached hereto as Exhibit "G" with the Parties participating in such acquisition as parties to such Operating Agreements. Notwithstanding the other provisions of this Section 8.415, the DJ Basin Greenhorn AMI shall also then automatically terminate as to the whole section or sections under which the properties comprising the Acquisition are located. Further, the DJ Basin Greenhorn AMI shall also be amended from time to time during the Term of the Agreement to the extent that any sale, transfer, or assignment of a lease or leases set forth in the attached Exhibits “A”, “B”, “C”, “D” or “E” to a third party resulting in the relinquishment of all joint interests in a township or townships within the DJ Basin Greenhorn AMI shall result in the elimination of such township or townships from the DJ Basin Greenhorn AMI as of the effective date of the sale, transfer, or assignment of the leasehold interests. Vecta and Synergy acknowledge that the overriding royalty interest referenced in Section 8 shall apply to any and all extensions or renewals of the Vecta Greenhorn Project Leases, the Vecta Wattenberg Extension Area Leases, or the Synergy Greenhorn Project Leases as to all or any part of the lands set forth in the attached Exhibits “A”, “B” and “C”.

Area of Mutual Interest. In the event of Closing, thereafter the ----------------------- parties PGP and CEPI agree that in the event either ----------------------- party or an affiliate of either party (the "Acquiring Party") shall acquire any oil and gas interests, whether producing or nonproducingnon-producing, farmouts or other similar contracts which affect or pertain to lands and minerals, located within Huerfano County, Colorado the area described on Exhibit "F" hereto (the "InterestsMineral Interest"), it shall notify the other party (the "Nonacquiring Non-Acquiring Party") of such acquisition. At the time of giving the notice, the Acquiring Party The notice shall provide access to copies include a copy of all instruments of acquisition, including without limitation, copies of leases, abstracts, agreements, title memos, assignments, subleases, farmouts and other contracts affecting the Interests in possession Mineral Interest. The Acquiring Party shall also enclose an itemized statement of the actual cost and expenses incurred by the Acquiring PartyParty in acquiring such Mineral Interest, excluding, however, costs and expenses of its own personnel ("acquisition costs"). For thirty days (30) days after receipt of the notice of acquisition, Nonacquiring Non-Acquiring Party shall have the right to acquire its Proportionate Interest (as defined below) proportionate interest in the acquisition on the same terms and conditions on which the Acquiring Party has acquired or has the right to acquire such Interest acquisition, by notifying the Acquiring Party party of its desire to share in the acquisition, and paying to the Acquiring Party its Proportionate Share proportionate share of the cost of acquisition, or in the case of a farmout or other similar agreement requiring certain performance such as drilling of a test well, agreeing to be liable for its Proportionate Share proportionate share of the cost of any performance required. If the Mineral Interest covers lands both within and outside of the area of mutual interest, the Non-Acquiring Party's option to acquire an interest therein shall extend only to those lands within the area of mutual interest. For purposes of this Sectionsection, the term Proportionate share "affiliate" shall mean: a) when , with respect to each party hereto, an individual or entity that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with such party. With respect to PGP, it pertains shall include, without limitation, POCI and Petroglyph Energy, Inc. With respect to leasehold working interestsCEPI, ninety percent (90%) in the case of PGP and ten percent (10%) in the case of Infinity; and b) when however, it pertains to mineral interests and overriding royalty interests, fifty percent (50%) in the case of PGP and fifty percent (50%) in the case of Infinity. Any mineral interests in Huerfano County acquired by either party shall be subject to POP's right to acquire an oil and gas lease thereon, which lease shall reserve to the mineral owners a royalty interest of 1/8th of production. Notwithstanding anything to the contrary in this Section 8.4, the Coltex Overrides shall not be subject to the terms of this Section 8.4include any affiliate that is a public utility.

Area of Mutual Interest. (a) There shall be established for the purposes of this Agreement an "Area of Mutual Interest" for each Prospect which shall include all the Lands within such Prospect together with an area of ten miles in distance around such Lands. (b) For the purposes of this Clause the term "Acquiring Shares" shall mean the interests earned, or to be earned, of the parties as such relate to the applicable Prospect. (c) In the event of Closing, thereafter the ----------------------- parties agree that in the event either party hereto acquires, subsequent to the date hereof and prior to December 31, 1999, an interest in Petroleum Substances in a block or an affiliate parcel of either lands, fifty (50%) percent or more by surface area of which lies within the Area of Mutual Interest, such acquisition shall be subject to the following terms and provisions: (i) the party acquiring the interest (hereinafter referred as the "Acquiring Partyacquiring party") shall acquire any oil and gas interestsshall, whether producing or nonproducingwithin ten (10) days of acquiring the interest, farmouts or other similar contracts which affect or pertain give notice in writing to lands and minerals, located within Huerfano County, Colorado (the "Interests"), it shall notify the other party (the "Nonacquiring Partyacquisition notice") setting out the nature of such acquisition. At the time of giving the noticeinterest acquired, the Acquiring Party price paid therefor, together with the obligations assumed or to be assumed in connection therewith. The other party shall provide access to copies of all instruments of acquisitionhave the right, including without limitation, copies of leases, abstracts, agreements, title memos, assignments, subleases, farmouts and other contracts affecting the Interests in possession of the Acquiring Party. For thirty days within ten (3010) days after receipt, or the receipt deemed by it pursuant to Article XIII hereof, of the notice of acquisitionsuch acquisition notice, Nonacquiring Party shall have the right to acquire its Proportionate Interest Acquiring Share of such acquisition by so advising the acquiring party whereupon the lands so acquired shall be governed by the terms of the Operating Agreement; (as defined belowii) in where a party does not advise the acquisition on the same terms and conditions on which the Acquiring Party has acquired or has the right to acquire such Interest by notifying the Acquiring Party acquiring party of its desire to share participate in the acquisitionacquisition pursuant to the above provision, and paying its Proportionate Share it shall be deemed to have no interest in participating in the acquisitions. (d) If, pursuant to a contractual obligation existing as of the cost date hereof, Frontier is required to offer to a third party an interest in lands acquired by it within the Area of acquisitionMutual Interest, or in the case provisions of a farmout or other similar agreement requiring certain performance such as drilling of a test well, agreeing this Clause shall be deemed to be liable for its Proportionate Share of the cost of any performance required. For purposes of this Section, the term Proportionate share shall mean: a) when it pertains to leasehold working interests, ninety percent (90%) in the case of PGP and ten percent (10%) in the case of Infinity; and b) when it pertains to mineral interests and overriding royalty interests, fifty percent (50%) in the case of PGP and fifty percent (50%) in the case of Infinity. Any mineral interests in Huerfano County acquired by either party shall be subject to POP's right to acquire an oil and gas lease thereon, which lease shall reserve modified to the mineral owners a royalty interest of 1/8th of production. Notwithstanding anything extent necessary to the contrary in this Section 8.4, the Coltex Overrides shall not be subject give effect to the terms of this Section 8.4such contractual obligation.