Cost of Drilling and Completion Sample Clauses
Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows:
1. The Cost of the Prospect, as defined; and
2. For intangible well Costs:
a. For each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by the "intangible drilling and completion cost" in the following table, plus the actual extra completion cost of zones completed in excess of the cost of the first zone and actual additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; or
b. For each well which the partnership elects not to complete, an amount equal to the "intangible diy hole cost" in the following table, plus the additional costs incurred in the event that an intermediate or third string of surface casing is run, rig mobilization and trucking costs, the additional cost for directional drilling and drill stem testing, sidetracking, fishing of drilling tools; and
3. The tangible Costs of drilling and completing tire Partnership ▇▇▇▇▇ and of gathering pipelines necessary to connect the well to tire nearest appropriate sales point or delivery point. To tire extent that a Partnership acquires less than 100% of a Prospect, its Drilling and Completion Costs of that Prospect will proportionately decrease. Footage Based Rate ▇▇▇▇▇▇▇▇▇▇ Field Colorado Cretaceous Codell 6,500 - 7,800' $57 per foot $19 per foot Wattenberg Field Colorado Cretaceous J Sandstone 7,000 - 8,000' $68 per foot $22 per foot Piceance Basin Colorado Cretaceous Mesaverde 7,000 - 10,000' $135 per foot $76 per foot Sand Wash Basin Colorado Cretaceous Territory Sands 8,000 - 12,000' $135 per foot $76 per foot * The depth used for determination well charges will be the deepest penetration by the drilling bit. In the event the foregoing rates exceed competitive rates available from other non-affiliated persons in the area engaged in the business of rendering or providing comparable services or equipment, the foregoing rates will adjust to an amount equal to that competitive rate.
Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows:
1. The Cost of the Prospect, as defined; and
2. For intangible well Costs:
a. For each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by the "intangible drilling and completion cost" in the following table, plus the actual extra completion costs for work required by state law in the event an intermediate or third string of surface casing is run; plus the actual cost for directional drilling services, if required, or
b. For each well in which the Partnership elects not to complete, an amount equal to the "intangible dry hole cost" in the following table, plus actual additional cost for work required by state law in the event an intermediate or third string of surface casing is run, plus the actual costs for directional drilling services, if required; and
3. The tangible Costs of drilling and completing the Partnership w▇▇▇▇ and of gathering pipelines necessary to connect the well to the nearest appropriate sales point or delivery point. To the extent that a Partnership acquires less than 100% of a Prospect, its Drilling and Completion Costs of that Prospect will proportionately decrease. Location Target Formation Approximate Well Depth Intangible Drilling and Completion Cost* Intangible Dry Hole Cost* Northern West Virginia and Pennsylvania Upper Devonian and Mississippian 2,000 - 5,000' $60 per foot for first 2,200 feet plus $16 per foot for each additional foot below 2,200 feet $33 per foot for the first 2,200 feet plus $9 per foot for each additional foot below 2,200 feet Michigan Antrim Shale 800 - 1,200' $138 per foot for the first 1,000 feet plus $22 per foot for each additional foot below 1,000 feet $60 per foot for the first 1,000 feet plus $12 for each additional foot below 1,000 Wattenberg Field Cretaceous Codell 6,500 - 7,800' $55 per foot $18 per foot Wattenberg Field Cretaceous J Sandstone 7,000 - 8,000' $67 per foot $21 per foot Piceance Basin Cretaceous Mesaverde 7,000 -10,000' $130 per foot $75 per foot * The depth used for determination well charges will be the deepest penetration by the drilling bit. In the event the foregoing rates exceed competitive rates available from other non-affiliated persons in the area engaged...
Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows:
1. The Cost of the Prospect, as defined;
2. The intangible costs of drilling and completing the well, including the Managing General Partner's compensation for acting as operator, equal to 12.6% of the total direct well cost if the investor partners' interest in the well is 63%, and proportionally reduced if the tangible costs exceed 37% of the direct well costs on average for the Partnership's w▇▇▇▇, so that the Managing General Partner's contribution to and interest in the Partnership is increased above 37%; and
3. The tangible Costs of drilling and completing the Partnership w▇▇▇▇ and of gathering pipelines necessary to connect the well to the nearest appropriate sales point or delivery point. If the Partnership acquires less than 100% of a Prospect, its Drilling and Completion Costs of that Prospect will proportionately decrease. Intangible drilling costs will include a monthly drilling well fixed overhead based on the most recently published Ernst & Young fixed rate overhead survey. The rate will be determined by state and well depth. In addition, the Managing General Partner may also provide direct services in the drilling and completion of the w▇▇▇▇, including land and legal services, roustabout and construction services, supervision of drilling and completion operations, engineering and geological services, and other services. Such services will be provided at the Managing General Partner's cost determined in accordance with generally accepted accounting principles and subject to written agreements. If the foregoing rates for direct services exceed competitive rates available from other non-affiliated persons in the area engaged in the business of rendering or providing comparable services or equipment, the foregoing rates will adjust to an amount equal to that competitive rate.
Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows:
1. The Cost of the Prospect, as defined; and
2. For intangible well Costs:
a. For each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by the "intangible drilling and completion cost" in the following table, plus the actual extra completion costs for work required by state law in the event an intermediate or third string of surface casing is run; plus the actual cost for directional drilling services, if required, or
b. For each well in which the Partnership elects not to complete, an amount equal to the "intangible dry hole cost" in the following table, plus actual additional cost for work required by state law in the event an intermediate or third string of surface casing is run, plus the actual costs for directional drilling services, if required; and
3. The tangible Costs of drilling and completing the Partnership ▇▇▇▇▇ and of gathering pipelines necessary to connect the well to the nearest appropriate sales point or delivery point. To the extent that a Partnership acquires less than 100% of a Prospect, its Drilling and Completion Costs of that Prospect will proportionately decrease. Northern West Virginia and Pennsylvania Upper Devonian and Mississippian 2,000' - 5, 000' $60 per foot for first 2,200 feet plus $16 per foot for each additional foot below 2,200 feet $33 per foot for the first 2,200 feet plus $9 per foot for each additional foot below 2, 200 feet Michigan Antrim Shale 800-1,200' $138 per foot for the first 1,000 feet plus $22 per foot for each additional foot below 1,000 feet $60 per foot for the first 1,000 feet plus $12 for each additional foot below 1,000 Wattenberg Field Cretaceous Codell 6,500-7,800' $60 per foot $20 per foot Wattenberg Field Cretaceous J Sandstone 7,000-8,000' $72 per foot $23 per foot Piceance Basin Cretaceous 7,000-10,000' $150 per foot $85 per foot North Dakota Mesaverde Mississippian Through Ordovician Carbonates Uinta 8,000-15,000' $150 per foot $100 per foot Utah Green River Wsatch Mesaverde ▇▇▇▇▇▇ 5.000-14,000' $150 per foot $85 per foot Wyoming Mesaverde ▇▇▇▇▇ ▇▇▇▇▇▇ 7,000-14,000' $150 per foot $85 per foot * The depth used for determination well charges will be the deepest penetration by ...
Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Appalachian Basin Partnership well as follows:
1) The Cost of the Prospect as defined in Article IV, B, and:
2) For intangible well costs, for each well completed and placed in production an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied times $60.00 per foot to a depth of 2,200 feet plus $16.00 per foot in excess of 2,200 feet, plus the actual extra intangible completion cost of zones completed in excess of the cost of the first zone and the actual extra intangible cost of running a mine string if an underground mine is encountered by the wellbore plus the actual cots for directional drilling services, if required.
3) The cost of tangible well equipment and gathering pipeline necessary to connect the well to the nearest appropriate sales point or delivery point. In the event to foregoing rates exceed competitive rates available from other persons in the area engaged in the business of rendering comparable services or equipment, the foregoing rates will be adjusted to an amount equal to that competitive rate, but not less than the cost of providing such services or equipment. With respect to Michigan Basin ▇▇▇▇▇, the partnership will pay its share of third party drilling costs, plus the Managing General Partners costs of supervision, engineering, geology, accounting, other services provided and fixed rate overhead charges where a third party operator is used manage the drilling process, or a competitive rate in the event the Managing General Partner serves as operator.
Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well as follows:
1) The Cost of the Prospect as defined in Article IV, B, and:
2) For intangible well costs, for each well completed and placed in production an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied times $60.00 per foot to a depth of 2,200 feet plus $16.00 per foot in excess of 2,200 feet, plus the actual extra intangible completion cost of zones completed in excess of the cost of the first zone and the actual extra intangible cost of running a mine string if an underground mine is encountered by the wellbore plus the actual cots for directional drilling services, if required.
3) The cost of tangible well equipment and gathering pipeline necessary to connect the well to the nearest appropriate sales point or delivery point. In the event to foregoing rates exceed competitive rates available from other persons in the area engaged in the business of rendering comparable services or equipment, the foregoing rates will be adjusted to an amount equal to that competitive rate, but not less than the cost of providing such services or equipment.
Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows:
1. The Cost of the Prospect, as defined; and
2. <R>The </R> intangible well Costs<R></R>
3. The tangible Costs of drilling and completing the Partnership ▇▇▇▇▇ and of gathering pipelines necessary to connect the well to the nearest appropriate sales point or delivery point.<R> and;
4. The Managing General Partner's drilling compensation which should be equal to 15% of the preceding three costs.</R> To the extent that a Partnership acquires less than 100% of a Prospect, its Drilling and Completion Costs of that Prospect will proportionately decrease.<R></R> In the event the foregoing rates exceed competitive rates available from other non-affiliated persons in the area engaged in the business of rendering or providing comparable services or equipment, the foregoing rates will adjust to an amount equal to that competitive rate.
Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Partnership well, where the Managing General Partner serves as operator as follows:
1. The Cost of the Prospect, as defined; and
Cost of Drilling and Completion. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Appalachian Basin Partnership well as follows:
1. The Cost of the Prospect as defined in Article IV, B, and:
2. For intangible well costs:
a. For each well completed and placed in production an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied times $60.00 per foot to a depth of 2,200 feet plus $16.00 per foot in excess of 2,200 feet, plus the actual extra intangible completion cost of zones completed in excess of the actual extra intangible cost of running a mine string if an underground mine is encountered by the wellbore plus the actual cost for directional drilling services, if required.
b. For each well in which the Partnership elects not to complete, an amount equal to $33.00 per foot multiplied times the depth of the well to 2,200 feet plus $9.00 per foot for each additional foot below 2,200 feet as specified above plus the actual costs for directional drilling services, if required.
3. The cost of tangible well equipment and gathering pipeline necessary to connect the well to the nearest appropriate sales point or delivery point. The Partnership shall bear its proportionate share of the cost of drilling and completing or drilling and abandoning each Michigan Basin Partnership well as follows:
1. The Cost of the Prospect, as defined; and
2. For intangible well Costs:
a. For each well completed and placed in production, an amount equal to the depth of the well in feet at its deepest penetration as recorded by the drilling contractor multiplied by $138 per foot for the first 1,000 feet of well depth plus $22 per foot for each additional foot below 1,000 feet to the deepest penetration of the well; plus in each case the actual extra cost of zones completed in excess of the cost of the first zone and actual additional costs for work required by state law in the event an intermediate or third string of surface casing is run, plus the actual costs for directional drilling services, it required, or