Common use of Plan of Operations Clause in Contracts

Plan of Operations. 11.1 It is recognized and agreed by the parties hereto that all of the land subject to this agreement is reasonably proved to be productive of Unitized Substances in paying quantities and that the object and purpose of this agreement is to formulate and to put into effect a secondary recovery project in order to effect additional recovery of Unitized Substances, prevent waste and conserve natural resources consistent with good engineering practices expected of a prudent operator. The parties hereto agree that the Unit Operator may, subject to the consent and approval of a plan of operation by the Working Interest Owners and the Supervisor, inject into the Unitized Formation through any well or ▇▇▇▇▇ completed therein, brine, water, air, gas, oil, liquid petroleum gases and any one or more other substances or combinations of substances whether produced from the Unitized Formation or not, and that the location of input ▇▇▇▇▇ and the rate of injection therein and the rate of production shall be governed by standards of good geologic and petroleum engineering practices and conservation methods. The Working Interest Owners and the Supervisor shall be furnished periodic reports on the progress of the plan of operation and any revision or changes thereto; provided, however, that any revision of the plan of operation involving a deviation from the initial plan of operation shall be subject to the consent and approval of the Working Interest Owners and the Supervisor. 11.2 The initial plan of operation shall be filed with the Supervisor concurrently with the filing of this Unit Agreement for final approval. Said initial plan of operation and all revisions thereof shall be as complete and adequate as the Supervisor may determine to be necessary for timely operation consistent herewith. Reasonable diligence shall be exercised in complying with the obligations of the approved plan of operation. Thereafter, from time to time before the expiration of any existing plan, the Unit Operator shall submit for like approval a plan for an additional specified period of operation. Notwithstanding anything to the contrary, herein contained, if Unit Operator fails to commence Unit Operations for the secondary recovery of Unitized Substances from the Unit Area within six months after the effective date of this agreement or any extension thereto approved by the Supervisor, this agreement shall terminate automatically upon the expiration of said six month period. 11.3 The parties hereto subject to prior rights, if any, grant to the Unit Operator the use of brine or water or both from any formation in and under the Unitized Land for injection into the Unitized Formation insofar as these rights are granted by the oil and gas leases.

Plan of Operations. 11.1 It is recognized and agreed by the parties hereto that all of the land subject to this agreement Agreement is reasonably proved to be productive of Unitized Substances in paying quantities and that the object and purpose of this agreement Agreement is to formulate and to put into effect a secondary an improved recovery project in order to effect additional recovery of Unitized Substances, prevent waste and conserve natural resources consistent with good engineering practices expected of a prudent operatorresources. The parties hereto agree that the Unit Operator may, subject shall have the right to the consent and approval of a plan of operation by the Working Interest Owners and the Supervisor, inject into the Unitized Formation through any substances for secondary recovery or enhanced recovery purposes in accordance with a plan of operation approved by the Working Interest Owners, the A.O., the Land Commissioner and the Division, including the right to drill and maintain injection ▇▇▇▇▇ on the Unitized Land and completed in the Unitized Formation, and to use abandoned well or ▇▇▇▇▇ completed therein, brine, water, air, gas, oil, liquid petroleum gases and any one or more other substances or combinations of substances whether produced producing from the Unitized Formation or notfor said purpose. Subject to like approval, and that the location Plan of input ▇▇▇▇▇ and the rate of injection therein and the rate of production shall Operation may be governed by standards of good geologic and petroleum engineering practices and conservation methodsrevised as conditions may warrant. The Working Interest Owners and the Supervisor shall be furnished periodic reports on the progress initial Plan of the plan of operation and any revision or changes thereto; provided, however, that any revision of the plan of operation involving a deviation from the initial plan of operation shall be subject to the consent and approval of the Working Interest Owners and the Supervisor. 11.2 The initial plan of operation Operation shall be filed with the Supervisor A.O., the Land Commissioner and the Division concurrently with the filing of this the Unit Agreement for final approval. Said initial plan of operation operations and all revisions thereof shall be as complete and adequate as the Supervisor A.O., the Land Commissioner and the Division may determine to be necessary for timely operation consistent herewith. Reasonable diligence Upon approval of this Agreement and the initial plan by the A.O. and Commissioner, said plan, and all subsequently approved plans, shall be exercised in complying with constitute the operating obligations of the approved plan of operationUnit Operator under this Agreement for the period specified therein. Thereafter, from time to time before the expiration of any existing plan, the Unit Operator shall submit for like approval a plan for an additional specified period of operationoperations. After such operations are commenced, reasonable diligence shall be exercised by the Unit Operator in complying with the obligations of the approved Plan of Operation. Notwithstanding anything to the contrary, contrary herein contained, if should the Unit Operator fails fail to commence Unit Operations for the secondary recovery of Unitized Substances from the Unit Area within six eighteen (18) months after the effective date of this agreement Agreement, or any extension thereto thereof approved by the SupervisorA.O., this agreement Agreement shall terminate automatically upon as of the expiration date of said six month perioddefault. 11.3 The parties hereto subject to prior rights, if any, grant to the Unit Operator the use of brine or water or both from any formation in and under the Unitized Land for injection into the Unitized Formation insofar as these rights are granted by the oil and gas leases.

Plan of Operations. 11.1 It is recognized and agreed by the parties hereto that all of the land subject to this agreement is has been reasonably proved proven to be productive of Unitized Substances in paying quantities or is necessary for Unit Operations and that the object and purpose of this agreement is to formulate and to put into effect a secondary enhanced oil recovery project in order to effect additional a greater recovery of Unitized Substances, prevent waste and conserve natural resources consistent with good engineering practices expected of a prudent operatorresources. The parties hereto agree that the Unit Operator may, subject to the consent and approval of a plan of operation by the Working Interest Owners Owners, the Division and the SupervisorCommissioner, inject into the Unitized Formation Formation, through any well or ▇▇▇▇▇ completed therein, brine, water, air, gas, oil, liquid liquefied petroleum gases gas, steam and any one or more other substances or combinations a combination of substances any said substances, whether produced from the Unitized Formation or not, and that the location of input ▇▇▇▇▇ and the rate rates of injection therein and the rate of production shall be governed by standards of good geologic geological and petroleum engineering practices and conservation methods. Reasonable diligence shall be exercised by Unit Operator in complying with the obligations of any approved plan of operation. The parties hereto, to the extent they have the right so to do, hereby grant Unit Operator the right to use brine or water (or both) produced from any formation underlying the Unit Area for injection into the Unitized Formation; provided, however, that this grant of said right shall not preclude the use of brine or water (or both) produced from any formation other than the Unitized Formation for injection into formations other than the Unitized Formation. After commencement of secondary and or enhanced oil recovery operations, Unit Operator shall furnish the Commissioner and the Division monthly injection and production reports for each well in the Unit. The Working Interest Owners Owners, the Commissioner and the Supervisor Division shall be furnished periodic reports on the progress of the plan of operation and any revision revisions or changes theretothereto necessary to meet changed conditions or to protect the interests of all parties to this agreement; provided, however, that any revision major revisions of the plan of operation involving a basic deviation from the initial plan of operation shall be subject to the consent and approval of the Working Interest Owners Owners, the Commissioner and the Supervisor. 11.2 Division. The initial plan of operation shall be filed with the Supervisor Division and the Commissioner concurrently with the filing of this Unit Agreement for final approval. Said initial plan of operation and all revisions thereof shall be as complete and adequate as the Supervisor may determine to be necessary for timely operation consistent herewith. Reasonable diligence shall be exercised in complying with the obligations of the approved said plan of operation. Thereafter, from time to time before the expiration of any existing plan, the Unit Operator shall submit for like approval a plan for an additional specified period of operation. Notwithstanding anything to the contrary, contrary herein contained, if the Unit Operator fails to commence Unit Operations for the shall commence, if not already having done so, secondary recovery of Unitized Substances from operations and/or enhanced oil recovery operations on the Unit Area within not later than six (6) months after the effective date of this agreement Agreement, or any extension thereto thereof approved by the SupervisorCommissioner and Division or this Agreement, this agreement shall terminate automatically upon the expiration of said six month period. 11.3 The parties hereto subject to prior rights, if any, grant to in which latter event the Unit Operator the use of brine or water or both from any formation in and shall notify all interested parties. After such operations are commenced, Unit Operator shall carry on such operations as would a reasonably prudent operator under the Unitized Land for injection into the Unitized Formation insofar as these rights are granted by the oil and gas leasessame or similar circumstances.