Common use of Course of Action After Reaching Objective Depth Clause in Contracts

Course of Action After Reaching Objective Depth. When a Development Well has been drilled to its Objective Depth and reasonable testing, coring, and logging have been completed and the results have been furnished to the Participating Parties, Operator shall notify the Participating Parties of Operator’s recommendation for further operations in the well and the following provisions shall apply: A Participating Party shall have the right to propose another operation by notifying the Operator and the other Participating Parties of its proposed operation within twenty-four (24) hours, [ ] inclusive [ ] exclusive of Saturdays, Sundays, and federal holidays, of receipt of the Operator’s notice. The Participating Parties shall notify Operator within forty-eight (48) hours, [ ] inclusive [ ] exclusive of Saturdays, Sundays, and federal holidays, of receipt of the Operator’s proposal whether the Participating Parties elect to (a) participate in a recommended operation, or (b) not participate in a recommended operation. Failure to respond shall be deemed to be an election not to participate in any of the recommended operations.

Course of Action After Reaching Objective Depth. When a Development an Exploratory Well has been drilled to its Objective Depth and reasonable testing, coring, and logging have been completed as set forth in the approved AFE and the results have been furnished to the Participating Parties, Operator shall notify the Participating Parties of Operator’s recommendation for further operations in the well well, and the following provisions shall apply: A Participating Party shall have the right to propose another operation by notifying the Operator and the other Participating Parties of its proposed operation within twenty-four (24) hours, [ ] inclusive [ ] exclusive of Saturdays, Sundays, and federal holidays, of receipt of the Operator’s notice. The Participating Parties shall notify Operator within forty-eight (48) hours, [ ] inclusive [ ] exclusive of Saturdays, Sundays, and federal holidays, of receipt of the Operator’s proposal whether the Participating Parties elect to (a) participate in a recommended operation, or (b) not participate in a recommended operation. Failure to respond shall be deemed to be an election not to participate in any of the recommended operations.