Common use of Resignation or Removal of Operator and Selection of Successor Clause in Contracts

Resignation or Removal of Operator and Selection of Successor. 1. Resignation or Removal of Operator: Operator may resign at any time by giving written notice thereof to Non-Operators. If Operator terminates its legal existence, no longer own an interest hereunder in the Contract Area, or is no longer capable of serving as Operator, Operator shall be deemed to have resigned without any action by Non-Operators, except the selection of a successor. Operator may be removed only for good cause by the affirmative vote of on Non-Operators owning a majority interest based on ownership as shown on Exhibit “A”. Such vote shall not be deemed effective until a written notice has been delivered to the Operator by a Non-Operator detailing the alleged default and Operator has failed to cure the default within thirty (30) days from first receipt of the notice or, if the default concerns and operation then being conducted, within forty-eight (48) hours of its receipt of the notice. For purposes hereof, “good cause” shall mean not only gross negligence or willful misconduct but also the material breach or inability to meet the standards of operation contained in Article V.A or material failure or inability to perform its obligations under this Agreement. Subject to Article VII.D.1, such resignation or removal shall not become effective until 7:00 o’clock a.m. on the first day of the calendar month following the expiration of ninety (90) days after the giving of notice or resignation by Operator or action by the Non-Operators to remove Operator, unless a successor Operator has been selected and assumes the duties of Operator at an earlier date. Operator, after effective date of resignation or removal, shall be bound by the terms hereof as a Non-Operator. A change of a corporate name or structure of Operator or transfer of Operator’s interest to any single subsidiary, parent or successor corporation shall not be the basis for removal of Operator. Should the well or ▇▇▇▇▇ being produced utilize gathering facilities owned by the outgoing operator, said ▇▇▇▇▇ shall be shut-in until such time as new facilities are installed or a formal arrangement and agreement be made, with the outgoing operator, for the use of the existing facilities. Said shut-in may not be in contravention of or violate the ongoing requirements of said lease.

Appears in 1 contract

Sources: Operating Agreement (Egpi Firecreek, Inc.)

Resignation or Removal of Operator and Selection of Successor. 1. Resignation or Removal of Operator: Any Operator may shall have the right to resign at any time time, but such resignation shall not become effective so as to release such Operator from its duties and obligations and terminate its rights as such for a period of six months after notice of Intention to resign has been served by giving written notice thereof an Operator on all Parties, unless a new Operator shall have been selected and approved and shall have taken over and assumed the duties and obligations of that Operator prior to Non-Operatorsthe expiration of said period. If In all instances of resignation or removal, until a successor Operator terminates its legal existenceis selected and approved as hereinafter provided, no longer own an interest hereunder in the Contract Area, or is no longer capable Parties snail be jointly responsible for performance of serving as the duties of that Operator, Operator shall be deemed to have resigned without any action by Non-Operators, except the selection of a successor. Operator may be removed only for good cause by the affirmative vote of on Non-Operators owning a majority interest based on ownership as shown on Exhibit “A”. Such vote and shall not be deemed effective until a written notice has been delivered to the Operator by a Non-Operator detailing the alleged default and Operator has failed to cure the default within thirty (30) later than 30 days from first receipt of the notice or, if the default concerns and operation then being conducted, within forty-eight (48) hours of its receipt of the notice. For purposes hereof, “good cause” shall mean not only gross negligence or willful misconduct but also the material breach or inability to meet the standards of operation contained in Article V.A or material failure or inability to perform its obligations under this Agreement. Subject to Article VII.D.1, before such resignation or removal becomes effective appoint a common agent to represent them in any action to be taken hereunder. The resignation of the Operator shall not release that Operator from any liability for any default by it hereunder occurring prior to the effective data of its resignation. Any Operator may, upon default or failure in the performance of its duties or obligations hereunder be subject to removal by a vote representing fifty percent (50%) or more of the voting power of the Parties. Such removal shall be effective upon notice thereof to the Parties. The resignation or removal of an Operator under this Agreement shall not terminate its right, title, or interest as the owner of a Working Interest, but upon the resignation or removal of an Operator becoming effective such Operator shall deliver possession of all equipment, materials, and appurtenances used in conducting the operations and owned by the Parties to the duly qualified successor Operator or to the owners thereof if no such new Operator is elected, to be used for the purpose of conducting operations hereunder. Nothing herein shall be construed as authorizing removal of any material, equipment and appurtenance needed for the preservation of any ▇▇▇▇▇. Whenever the Operator shall resign, or shall be removed as hereinabove provided or a change of an Operator is negotiated by the Parties, the Parties shall select a successor Operator. Such selection shall not become effective until 7:00 o’clock a.m. on the first day of the calendar month following the expiration of ninety (90) days after the giving of notice or resignation by Operator or action by the Non-Operators to remove Operator, unless a successor Operator has been so selected and assumes shall accept in writing the duties of Operator at an earlier date. Operator, after effective date of resignation or removal, shall be bound by the terms hereof as a Non-Operator. A change of a corporate name or structure of Operator or transfer and responsibilities of Operator’s interest to any single subsidiary, parent or successor corporation shall not be the basis for removal of Operator. Should the well or ▇▇▇▇▇ being produced utilize gathering facilities owned by the outgoing operator, said ▇▇▇▇▇ shall be shut-in until such time as new facilities are installed or a formal arrangement and agreement be made, with the outgoing operator, for the use of the existing facilities. Said shut-in may not be in contravention of or violate the ongoing requirements of said lease.

Appears in 1 contract

Sources: Joint Operating Agreement (Pacific Energy Resources LTD)