Continuous Drilling Sample Clauses
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Continuous Drilling. At the end of the primary term, this Lease shall remain in full force and effect as to all acreage included in each designated or existing Drilling Block. In order for a three (3) section Drilling Block to be in effect at the end of the primary term, there must be at least one (1) well producing or capable of producing oil and/or gas for its corresponding or associated three (3) section Drilling Block, or operations for the drilling of a corresponding well on a Drilling Block must be commenced. In order to hold or maintain said three (3) section Drilling Block(s) after the end of the primary term, Lessee must: a) be in compliance with the “Continuous Drilling Program” provisions contained herein on a three (3) section Drilling Block; said drilling operations holding the acreage attributable to the associated Drilling Block or b) on Drilling Block(s) in effect, but not in compliance with the Continuous Development Program, Lessee shall pay a delay rental equal to $5.00 per acre as to the acreage within said Drilling Block(s), but only on the acreage outside the defined “Well Tracts”. Said payment initially becomes due 180 days after the end of the primary term and thereafter on the anniversary date of the Lease. As to any acreage outside the Drilling Block(s) in effect at the end of the primary term, Lessee has the option within thirty (30) days to renew said acreage for $25.00 per acre on a separate oil and gas lease, which provides for a 1/6th (16.6666%) royalty, term of 5 years, initial base rental rate of $5.00 per net acre with a $2.50/acre per year escalation on rentals. At the later of (i) 180 days following the end of the primary term of this Lease, or (ii) the conclusion of the Continuous Development Program, as defined hereinafter, this Lease shall terminate as to all lands covered by this Lease not included within a Well Tract, as defined hereinafter except as to acreage renewed by Lessee pursuant to this paragraph. A Well Tract shall consist of any area surrounding each well which is capable of producing oil and/or gas containing 40 acres for each well, plus a tolerance of 10% with the Well Tract for each such well being as nearly as practicable in the shape of a square or rectangle surrounding such well. Should, however, the governmental authority having jurisdiction prescribe or permit the creation of drilling or proration units having a larger than the area above specified for Well Tracts, then said Well Tracts shall conform substantially in ...
Continuous Drilling. (a) Notwithstanding any provision of this Lease to the contrary, after a well producing, or capable of producing, oil, gas, sulphur or other hydrocarbons has been completed on the LEASED PREMISES, COMPANY will, within one hundred twenty (120) days of the date of filing of the completion report with the Texas Railroad Commission for the initial producer, begin drilling a subsequent well and thereafter, within the same time frame, commence succeeding ▇▇▇▇▇ until the LEASED PREMISES is fully developed to allowable density. Failure to so drill and continue drilling is a breach of a material term of this Lease and may result in forfeiture of this Lease as to acreage not contained in a production unit as herein defined. This continuous drilling requirement does not apply as to any acreage in this Lease of insufficient size to permit additional ▇▇▇▇▇ under the field rules established by the Texas Railroad Commission. COMPANY agrees such insufficient size acreage must, to the extent possible, be pooled with production units outside of the LEASED PREMISES. Nothing in this Lease precludes COMPANY, as a reasonably prudent operator, from simultaneously drilling additional ▇▇▇▇▇ as may be reasonably necessary for proper development of the LEASED PREMISES.
(b) COMPANY must, notwithstanding any other provision of this Lease, adequately protect the oil, gas, sulphur or other hydrocarbons under the LEASED PREMISES from drainage from adjacent lands or leases, including non-TAMUS lands or TAMUS lands leased at a lesser royalty. COMPANY must drill as many ▇▇▇▇▇ as the facts justify for the effective protection against drainage from such adjacent lands or leases. Neither the bonus, annual delay rental, nor royalties paid or to be paid relieves COMPANY from this express obligation.
Continuous Drilling. It is PVOG's intent to drill five (5) wells on a back-to-back basis. I▇ (▇) PVOG does not drill 5 wells; (ii) the first well is not ▇▇▇menced prior to March 1, 2004 or (iii) if there is a delay of more than sixty (60) days between the completion of one well and the commencement of operations on the next well under this paragraph, this Agreement shall terminate, PVOG shall have no further rights hereunder. PVOG will have the right to bank any unused continuous drilling or operation days between wells to be credited for future ▇▇▇▇▇ if it elects to do so.
Continuous Drilling. It is PVOG's intent to drill four (4) wells on a back-to-back ba▇▇▇ ▇n Phase II, Part A. If (i) the first well is not commenced before July 1, 2005; (ii) four wells are not drilled or (iii) there is a delay of more than sixty (60) days between the completion of one well and the commencement of operations on the next well under this paragraph, PVOG will forfeit its rights under this Agreement as it relates to Phase II, Part B and Phase III, retaining only the interest that has been earned as of the date of the forfeiture. PVOG will have the right to bank any unused continuous drilling or operation days between wells to be credited for f▇▇▇▇▇ wells if it elects to do s▇. ▇▇OG will incur no other penalties or liabilities other than as provided above.