Common use of Diligent Development Clause in Contracts

Diligent Development. Lessee shall exercise reasonable diligence, as a prudent operator, in drilling and operating ▇▇▇▇▇ for Oil and Gas on the Leased Premises while such products can be secured in Paving Quantities. At the election of Lessee, Lessee may drill and produce ▇▇▇▇▇ necessary to diligently develop the Leased Premises: provided, that the right to drill and produce such ▇▇▇▇▇ shall be subject to any system of well spacing or production allotments authorized and approved under applicable law or regulations, approved by the Secretary, and affecting the field or area in which the Leased Premises are situated.