Common use of Plugging and Abandonment of Test ▇▇▇▇▇ Clause in Contracts

Plugging and Abandonment of Test ▇▇▇▇▇. If Operator determines that the Test Well is not capable of producing oil or gas in paying quantities and that, therefore, the well should be plugged and abandoned, Operator shall promptly notify Farmor by telephone of such determination, with such notice to be immediately followed by written notice. Should Farmor agree with this determination (and a failure to respond in the manner and time indicated below shall constitute agreement), Operator shall proceed at its cost and expense to plug and abandon the Test Well in accordance with applicable state laws, rules and regulations, and shall level the ground around the location and clear and clean the premises to the satisfaction of the surface owners and surface lessees.