Common use of DRILLING AND DEVELOPMENT Clause in Contracts

DRILLING AND DEVELOPMENT. A. Agreement To Drill and Complete: PDC shall commence drilling of a well or ▇▇▇▇▇ on each Prospect within 180 days of the date of the initial formation of the Partnerships, but in no case later than March 30, 2002 with respect to the partnerships designated “PDC 2001- Limited Partnership; March 30, 2003 with respect to the partnerships designated "PDC 2002- Limited Partnership" and March 30, 2004 with respect to partnerships designated “PDC 2003 Limited Partnership” and shall continue drilling thereafter with due diligence to the Target formation unless a condition which renders further drilling impractical is encountered at a lesser depth, or unless the Partnership agrees to complete or abandon the well at a lesser depth. PDC shall make reasonable tests of all formations encountered during drilling which give indication of containing economic quantities of oil and/or gas. If such tests indicate the presence of economic quantities of oil and/or gas, PDC shall complete the well and install such surface and well equipment, gathering pipelines, heaters, separators, etc., as are necessary and normal in the area in which the Prospect is located. If it is determined that the well is not likely to produce oil and/or gas in commercial quantities PDC shall plug and abandon the well in accordance with applicable regulations.

DRILLING AND DEVELOPMENT. A. Agreement To Drill and Complete: PDC shall commence drilling of a well or ▇w▇▇▇▇ on each Prospect within 180 days of the date of the initial formation of the Partnerships, but in no case later than March 30, 2002 with respect to the partnerships designated “"PDC 2001- Limited Partnership"; March 30, 2003 with respect to the partnerships designated "PDC 2002- Limited Partnership" and Partnership"and March 30, 2004 with respect to the partnerships designated “"PDC 2003 Limited Partnership” " and shall continue drilling thereafter with due diligence to the Target formation unless a condition which renders further drilling impractical is encountered at a lesser depth, or unless the Partnership agrees to complete or abandon the well at a lesser depth. PDC shall make reasonable tests of all formations encountered during drilling which give indication of containing economic quantities of oil and/or gas. If such tests indicate the presence of economic quantities of oil and/or gas, PDC shall complete the well and install such surface and well equipment, gathering pipelines, heaters, separators, etc., as are necessary and normal in the area in which the Prospect is located. If it is determined that the well is not likely to produce oil and/or gas in commercial quantities PDC shall plug and abandon the well in accordance with applicable regulations.