Common use of PLAN OF DEVELOPMENT Clause in Contracts

PLAN OF DEVELOPMENT. (a) Except as provided in subparagraph (d) below, within 12 months after certification of a well capable of producing oil, gas, or associated substances in paying quantities, the lessee shall file two copies of an application for approval by each lessor 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 each of the State and ASRC with respect to its undivided interest. (b) The plan of development must be revised, updated, and submitted to the lessors for approval annually before or on the anniversary date of the previously approved plan. If no changes from an approved plan are contemplated for the following year, a statement to that effect must be filed for approval by each of the State and ASRC with respect to its undivided interest in lieu of the required revision and update. (c) The lessee may, with the approval of each of the State and ASRC with respect to its undivided interest, 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. (e) Neither the State nor ASRC will unreasonably withhold any approval required by this section.