Common use of PLAN OF DEVELOPMENT Clause in Contracts

PLAN OF DEVELOPMENT. (a) Except as provided in subparagraph (d) below, within 12 months after completion of a well capable of producing oil, gas, or associated substances in paying quantities, the lessee shall file an application for approval by the state of an initial plan of development that must describe the lessee's plans for developing the leased area. No development of the leased area may occur until a plan of development has been approved by the state. (b) The plan of development must be revised, updated, and submitted to the state for approval annually before or on the anniversary date of the previously approved plan. (c) The lessee may, with the approval of the state, subsequently modify an approved plan of development. (d) If the leased area is included in an approved unit, the lessee will not be required to submit a separate lease plan of development for unit activities.